Employee with less than two years' service fails in unfair dismissal and pay claims
A former employee who resigned after less than two years' service had her unfair dismissal claim dismissed and lost claims for notice pay, holiday pay and expenses.
1 min read · Last updated 18 May 2026
Case details
Key facts
- The claimant started work on 17 August 2020 and left on 29 April 2022, giving less than two years' service.
- The claimant resigned on 11 March 2022 giving one month's notice, which was later extended by mutual agreement to 29 April 2022.
- The claimant withdrew her unfair dismissal claim after being told she lacked the required two years' service.
- The claimant's holiday carry-over was not authorised in writing as required by the respondent's policy.
- Expense claims were either out of time or did not comply with the respondent's policy.
Timeline
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Employment started
Claimant began working for the respondent.
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Holiday year started
The holiday year ran from 1 January.
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Claimant resigned
Claimant gave one month's notice, stating she would leave on 11 March 2022 but agreed to serve notice.
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Claimant tried to retract notice
Claimant emailed to retract her resignation, but the respondent did not accept.
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Extension agreed
Parties mutually agreed the claimant would work until the end of April 2022.
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Employment ended
Claimant received a termination letter and her employment ended.
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Hearing
The tribunal heard the case via Cloud Video Platform.
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Judgment issued
Employment Judge Shulman dismissed all claims.
The legal issue
The tribunal had to decide whether the claimant was entitled to notice pay, holiday pay, and reimbursement of expenses, and whether any claims were brought in time.
The outcome
The tribunal dismissed all claims.
- The unfair dismissal claim was withdrawn after the tribunal explained that the claimant needed two years' service to bring such a claim.
- The notice pay claim failed because the claimant had resigned and given notice, and the extension of her employment did not change that.
- The holiday pay claim failed because the claimant had taken more holiday than she had accrued, and any carry-over was not authorised in writing as required by the respondent's policy.
- The expenses claims were either out of time (brought more than three months after the effective date of termination) or did not comply with the respondent's expenses policy.
Lessons & takeaways
- Employees with less than two years' service generally cannot bring unfair dismissal claims, unless the dismissal is for an automatically unfair reason.
- If you resign, your notice is usually binding; you cannot unilaterally retract it unless your employer agrees.
- Holiday carry-over must be authorised in writing if your employer's policy requires it.
- Expense claims must be submitted in line with your employer's policy and within any time limits, or they may be rejected.
- Claims for unauthorised deductions must be brought within three months of the deduction, or they will be out of time.
A case highlighting the limits of employment rights for short-service employees
This case shows how employment law protections are significantly weaker for employees with less than two years' continuous service. The claimant, who worked for District Enforcement Limited for around 20 months, resigned in March 2022 and later tried to retract her resignation. Although her employer agreed to extend her notice period, she was eventually dismissed. She brought claims for unfair dismissal, notice pay, holiday pay and expenses, but all were rejected.
The tribunal explained that she could not pursue an unfair dismissal claim because she had less than two years' service. This is a key threshold: without it, employees can only claim unfair dismissal if the reason is automatically unfair (e.g., whistleblowing or discrimination), which did not apply here.
What the employer did right
District Enforcement Limited had clear policies on holiday carry-over and expenses, and they stuck to them. The tribunal found that the claimant had not obtained written authorisation for holiday carry-over, as required by the policy, and her expense claims were either submitted too late or did not follow the required procedure. The employer also successfully argued that the claimant had taken more holiday than she had accrued, meaning she owed them, not the other way around.
Why this matters for similar claims
For anyone considering bringing a claim, this case is a reminder that employment rights are not automatic. The two-year service requirement for unfair dismissal is a major hurdle. Even for claims like unpaid wages or holiday pay, strict time limits and procedural rules apply. If you are thinking of resigning, be aware that your notice is generally final unless your employer agrees to a retraction. And always keep records of any authorisations or expense claims to protect your position.
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