Holiday pay underpaid for years: employee wins unfair dismissal and wage claims
A former employee with 8 years' service has won claims for unfair dismissal, wrongful dismissal, unpaid holiday pay and unauthorised deductions, receiving over £16,000. Her disability discrimination claims were dismissed.
1 min read · Last updated 18 May 2026
Case details
Key facts
- The claimant was employed by the second respondent for 8 years.
- The claimant's holiday pay was calculated on 16 hours per week instead of 20 hours per week.
- The claimant received a redundancy payment of £1,116.16 from the second respondent.
- The claimant's claims of disability discrimination and failure to make reasonable adjustments were dismissed.
- The claimant's claims of unfair dismissal, wrongful dismissal, holiday pay, and unauthorised deductions succeeded.
Timeline
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Claim issued
The claimant issued proceedings against the respondents.
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Hearing day 1
The substantive hearing commenced at Manchester Employment Tribunal.
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Hearing day 2
The hearing continued.
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Hearing day 3 and judgment
The hearing concluded and judgment was given orally.
The legal issue
The tribunal had to decide whether the employee was unfairly dismissed, wrongfully dismissed, entitled to correct holiday pay, and whether unauthorised deductions were made, as well as whether the employer discriminated against her due to disability and failed to make reasonable adjustments.
The outcome
The tribunal upheld the employee's claims of unfair dismissal, wrongful dismissal, holiday pay underpayment, and unauthorised deductions against the second respondent. The disability discrimination and failure to make reasonable adjustments claims were dismissed.
Compensation awarded:
- Basic award: £976.64 (after deducting £1,116.16 redundancy payment received)
- Compensatory award: £9,068.80
- Wrongful dismissal (8 weeks' notice): £1,395.20
- Holiday pay arrears: £406.35
- Unauthorised deductions: £4,527.11
- Total: £16,374.10
Lessons & takeaways
- Check your payslips: if your contracted hours are not reflected in holiday pay, you may have a claim for unauthorised deductions.
- Length of service can increase your basic award for unfair dismissal, but any redundancy payment received will be deducted.
- Disability discrimination claims require evidence that the employer knew or ought to have known about the disability and failed to make adjustments – not all health conditions will meet the legal test.
A long-serving employee's multiple claims
This case shows how a single employment relationship can give rise to several different legal claims. The former employee, who had worked for the organisation for eight years, brought claims for unfair dismissal, wrongful dismissal, unpaid holiday pay, unauthorised deductions, and disability discrimination. The tribunal at Manchester had to untangle each claim separately.
What the employer got wrong
The employer miscalculated holiday pay based on 16 hours per week instead of the employee's actual 20-hour contract. This error persisted over time, leading to a successful claim for unauthorised deductions. The employee also succeeded in her unfair dismissal claim, receiving a basic award reduced by the redundancy payment she had already been given, plus a compensatory award for loss of earnings.
Where the employee fell short
Her disability discrimination claims did not succeed. The tribunal found that the employer had not discriminated against her arising from disability and had not failed to make reasonable adjustments. This highlights that not every health issue will meet the legal definition of disability under the Equality Act 2010, and that employers are not automatically liable if they were unaware of the condition.
What this means for similar cases
Employees should carefully check their pay and holiday entitlements, especially if their hours vary. The success of the wage-related claims here shows that tribunals will correct systematic underpayments. However, disability claims require strong evidence that the employer knew about the disability and failed to take appropriate steps. Representing yourself, as the employee did here, is possible but can be challenging when facing professional counsel.
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