Hotel employee with 17 years' service wins unfair dismissal and unpaid pension claim
A hotel employee of 17 years was unfairly dismissed and awarded over £15,000 after her employer deducted pension contributions without paying them in and failed to follow redundancy procedures.
1 min read · Last updated 18 May 2026
Case details
Key facts
- The respondent failed to present a valid response on time.
- The respondent deducted pension contributions from the claimant's pay but did not apply them to her pension.
- The respondent failed to pay the claimant's holiday entitlement.
- The claimant was dismissed in breach of contract in respect of notice.
- The claimant had 17 years' service and was aged 56.
- The claimant was unfairly dismissed and entitled to redundancy compensation.
Timeline
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Pension deduction begins
The respondent deducted pension contributions from the claimant's pay but did not apply them to her pension, starting from November 2020.
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Pension deduction continues
Further pension deductions were made in February 2021.
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Pension deduction continues
Further pension deductions were made in June 2021.
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Pension deduction continues
Further pension deductions were made in July 2021.
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Pension deduction continues
Further pension deductions were made in August 2021.
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Pension deduction continues
Further pension deductions were made in September 2021.
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Claim presented
The claimant presented her claim to the Employment Tribunal.
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First judgment
Employment Judge Slater found the claimant entitled to £4,343.19 for breach of contract and unauthorised deduction from wages.
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Final hearing
Tribunal Judge Abigail Holt found the claimant unfairly dismissed and awarded £8,356.10 for unfair dismissal/redundancy and £2,438.25 for wrongful dismissal.
The legal issue
The tribunal had to decide whether the claimant was unfairly dismissed and entitled to a statutory redundancy payment, and whether the employer made unauthorised deductions from wages and breached contract by failing to pay pension contributions and holiday pay.
The outcome
The tribunal found in favour of the claimant on all claims. The respondent had failed to present a valid response and did not attend the hearing.
Key reasons:
- The claimant was unfairly dismissed as the redundancy process was not fair.
- The employer deducted pension contributions from pay but did not pay them into the pension scheme.
- The employer failed to pay accrued holiday pay.
- The claimant was dismissed without proper notice.
Compensation breakdown:
- Unfair dismissal / redundancy: £8,356.10
- Wrongful dismissal (notice pay): £2,438.25
- Breach of contract (pension contributions): £401.19
- Unauthorised deduction (holiday pay): £1,722.00
- Total: £15,137.54
Lessons & takeaways
- If you have long service (17 years here), the employer must follow a fair redundancy process or risk a finding of unfair dismissal.
- Deducting pension contributions from wages but not paying them to the pension scheme is a breach of contract that can be claimed.
- Employers must pay all accrued holiday pay on termination; failing to do so is an unauthorised deduction from wages.
- If an employer does not file a response or attend the hearing, the tribunal can still decide in your favour based on your evidence.
- Keep records of all deductions and holiday entitlement to support your claim.
A long-serving employee let down by her employer
The case shows what can happen when an employer facing financial difficulties fails to follow basic employment obligations. The claimant had worked at Park Hall Hotel for 17 years and was aged 56 when she was made redundant. Instead of a fair process, she was dismissed without proper notice, had pension contributions taken from her pay that were never paid into her pension, and was not paid for holiday she had accrued.
What the employer could have done differently
The respondent, Park Hall Hotel Ltd, was in creditors voluntary liquidation and did not engage with the tribunal process. A fair redundancy procedure would have included consulting with the employee, considering alternatives, and following a fair selection process. Paying pension contributions into the scheme and settling holiday pay on termination would have avoided the breach of contract and unauthorised deduction claims. Even in financial difficulty, employers must meet their legal obligations.
Why this matters for similar claims
This case is a reminder that employees with long service have stronger rights. The tribunal awarded over £8,000 for unfair dismissal and redundancy, plus additional sums for notice pay, unpaid pension contributions, and holiday pay. The total compensation of £15,137.54 reflects the multiple failures by the employer. For employees in similar situations, it shows that even if the employer is in liquidation or does not defend the claim, the tribunal can still award compensation based on your evidence. Keeping detailed records of pay, deductions, and holiday entitlement is crucial.
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