No written contract leads to holiday pay win for former employee
A former employee of AC Precision Engineering Ltd was awarded £4,101 after the tribunal found the company unlawfully deducted holiday pay and failed to provide a written contract.
1 min read · Last updated 18 May 2026
Case details
Key facts
- The claimant was never given a written contract or statement of particulars.
- The claimant had an agreement with Mr Cunnington to make up short days, but holiday records were not credited for time made up.
- The claimant was owed 55 hours of holiday pay at £35/hour, totalling £1,925.
- The respondent failed to pay the claimant's bonus and sick pay, but those claims were out of time.
- The tribunal found no breach of contract or breach of trust and confidence to support constructive dismissal.
Timeline
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Production manager hired
Respondent employed a production manager against the claimant's advice.
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Claimant's son dismissed
Respondent dismissed the claimant's son, which the claimant saw as a ploy to drive him out.
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Bonus not paid
Quarterly bonus of £3,000 due but not paid; respondent cited financial difficulties.
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Last bonus due date
Final quarterly bonus payment date; bonus not paid.
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Email with deadline
Respondent sent email asking claimant to reply by 6pm; claimant received it after deadline.
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Early conciliation started
Claimant began early conciliation with ACAS.
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Early conciliation ended
Early conciliation certificate issued.
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Claim presented
Claimant submitted his claim to the tribunal.
The legal issue
The tribunal had to decide whether the employer made unlawful deductions from wages (holiday pay, sick pay, bonus) and whether the employee was constructively unfairly dismissed.
The outcome
The tribunal partially upheld the claim. It found that the employer made unlawful deductions from wages in respect of holiday pay, totalling £1,925. Because the employer failed to provide a written statement of particulars (breach of s1 Employment Rights Act 1996), the award was increased by 4 weeks' pay (£2,176) under s38 Employment Act 2002, making a total of £4,101.
- Holiday pay owed: £1,925
- Section 38 uplift: £2,176
- Total award: £4,101
All other claims (sick pay, bonus, constructive unfair dismissal) were dismissed, primarily because they were brought outside the time limit or lacked evidence.
Lessons & takeaways
- Employers must provide a written statement of particulars within two months of employment; failure can lead to an automatic uplift of up to 4 weeks' pay.
- Holiday pay claims must be brought within three months of the last deduction; time limits are strictly applied.
- Custom and practice for sick pay requires clear evidence that the term is 'reasonable, certain and notorious' in the industry.
- Claimants should keep records of holiday taken and pay received to support unlawful deduction claims.
A case about paperwork and pay
This case shows how a lack of basic employment paperwork can cost an employer dearly. The former employee, a white-collar salaried worker, was never given a written contract or statement of particulars. When he left, he claimed he was owed holiday pay, sick pay, and a bonus. The tribunal found that the employer had unlawfully deducted holiday pay, but the other claims failed.
What went wrong for the employer
The employer, AC Precision Engineering Ltd, could have avoided the holiday pay claim by keeping proper records. The employee had an informal arrangement to make up short days, but the employer did not credit holiday records for time made up. This led to 55 hours of unpaid holiday pay. Worse, the employer had no written contract, so the tribunal applied a 4-week uplift under s38 Employment Act 2002, adding £2,176 to the award.
Why the result matters
This case is a reminder that holiday pay is a fundamental right. Even without a written contract, employees can claim unpaid holiday pay. However, other claims like sick pay and bonuses require clear evidence of entitlement. The employee's claims for sick pay and bonus were out of time, and his constructive dismissal claim failed because he could not show a fundamental breach of contract. For employees, it highlights the importance of keeping records and acting promptly.
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