Bereavement leave holiday pay and overpayment deduction: former employee awarded £2,100
A former employee who took bereavement leave was awarded £540 in unpaid holiday pay and £1,560 for a wage deduction after her final pay slip wrongly deducted an overpayment she had already repaid.
2 min read · Last updated 18 May 2026
Case details
- #holiday-pay
- #unlawful-deduction-from-wages
- #bereavement-leave
- #overpayment-repaid
- #withdrawn-claims
Key facts
- The claimant withdrew complaints of unfair dismissal, pregnancy/maternity discrimination, and sex discrimination.
- The respondent's response was struck out for non-compliance with a tribunal order.
- The claimant provided evidence of 60 hours unpaid holiday pay at £9.00 per hour, awarded £540.
- The claimant's final pay slip showed a deduction of £1,560, which was an overpayment she had already repaid, awarded £1,560.
- A claim for £781 related to Universal Credit was dismissed as not within tribunal jurisdiction.
- Claims for notice pay and redundancy payment were dismissed due to lack of evidence.
Timeline
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Preliminary hearing
Claimant indicated she was not pursuing unfair dismissal, discrimination claims; those were to be withdrawn.
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Order to show cause
Tribunal gave respondent opportunity to explain why response should not be struck out for non-compliance.
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Response struck out
Employment Judge Sweeney struck out respondent's response due to failure to comply with order.
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Final hearing
Claimant did not attend but provided submissions and documents. Tribunal proceeded in her absence.
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Judgment issued
Employment Judge Martin dismissed withdrawn claims, awarded holiday pay and wage deduction, dismissed other claims.
The legal issue
The tribunal had to decide whether the former employee was entitled to holiday pay under the Working Time Regulations for bereavement leave, and whether an unlawful deduction from wages occurred when her final pay slip deducted an overpayment she had already repaid.
The outcome
The tribunal partially granted the former employee's claims. It awarded £540 for unpaid holiday pay (60 hours at £9.00 per hour) for bereavement leave, and £1,560 for an unlawful deduction from wages, where the final pay slip deducted an overpayment that had already been repaid.
Other claims were dismissed:
- Claims for unfair dismissal, pregnancy/maternity discrimination, and sex discrimination were withdrawn.
- Claims for notice pay and redundancy payment were dismissed due to lack of evidence.
- A claim for £781 related to Universal Credit was dismissed as it is not within the tribunal's jurisdiction.
Compensation breakdown:
- Holiday pay: £540
- Unlawful deduction from wages: £1,560
- Total: £2,100
Lessons & takeaways
- Keep records of all communications and payments, especially when repaying overpayments, to prove that a deduction from final wages is incorrect.
- If you are unsure about a claim, check whether it falls under the tribunal's jurisdiction; for example, Universal Credit disputes must be taken up with HMRC, not the employment tribunal.
- Even if the employer's response is struck out, you still need to provide evidence to support your claims, or they may be dismissed.
- Bereavement leave may count as holiday for the purposes of the Working Time Regulations if it is unpaid and the employee would otherwise have taken holiday.
What this case shows in practice
This case illustrates how employment tribunals handle claims when an employer fails to engage with proceedings. The respondent, St Cuthbert's House Limited, had its response struck out for non-compliance with a tribunal order, and the company's home had apparently closed. Despite this, the former employee still had to provide evidence to support her claims.
The former employee took bereavement leave and was not paid for 60 hours. She claimed that this was holiday pay under the Working Time Regulations. The tribunal accepted her evidence, including a breakdown of hours and her rate of pay, and awarded £540. This shows that even when an employer is absent, the tribunal will examine the evidence carefully.
What the losing side could have done differently
The employer could have complied with the tribunal's order to avoid having its response struck out. If it had participated, it might have been able to challenge the holiday pay claim or explain the wage deduction. Instead, the employer's failure to engage meant the tribunal decided the case based solely on the former employee's evidence.
Regarding the wage deduction, the former employee's final pay slip showed a deduction of £1,560 for an overpayment. However, she had already repaid the overpayment and provided evidence of this, including a written acknowledgement from the employer. The tribunal found the deduction was unlawful and ordered repayment. The employer could have avoided this by ensuring its payroll records were accurate and that deductions were only made for genuine outstanding amounts.
Why the result matters for similar claims
This case is a reminder that employment tribunals can proceed even when an employer is absent, but claimants must still provide sufficient evidence. The dismissal of the Universal Credit claim highlights the importance of understanding the tribunal's jurisdiction. Claims for benefits or tax credits must be pursued through the relevant government body, not the employment tribunal.
For employees who have taken bereavement leave, this case confirms that such leave may be treated as holiday for pay purposes if it is unpaid. Employers should ensure they pay for all holiday taken, including bereavement leave, or face claims under the Working Time Regulations.
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