Unfair dismissal claim struck out for lack of service, but wage claims succeed
Three former employees had their unfair dismissal complaints struck out because they had less than two years' service. However, they won default judgments for unauthorised deductions and holiday pay, totalling £2,891.77.
1 min read · Last updated 18 May 2026
Key facts
- The claimants were employed by the respondent for less than two years.
- The respondent failed to present a valid response to the claims.
- The respondent made unauthorised deductions from the claimants' wages.
- The respondent failed to pay the claimants' holiday entitlement.
- The unfair dismissal complaints were struck out due to lack of qualifying service.
Timeline
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Claims issued
The claimants issued their claims in the South West Employment Tribunals.
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Unfair dismissal struck out
Employment Judge Dawson struck out the unfair dismissal complaints because the claimants had less than two years' service.
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Default judgments on wage claims
Employment Judge Self entered default judgments against the respondent for unauthorised deductions and holiday pay.
The legal issue
The tribunal had to decide whether the employees had sufficient service to bring unfair dismissal claims, and whether the employer had made unauthorised deductions and failed to pay holiday pay.
The outcome
The tribunal struck out the unfair dismissal complaints because the employees had less than two years' service, which is the minimum qualifying period for bringing such a claim under section 108 of the Employment Rights Act 1996.
However, the employer failed to present a valid response to the claims for unauthorised deductions and holiday pay. The tribunal therefore entered default judgments and ordered the following payments:
- Claimant 1: £728.39 (£180.42 for unauthorised deductions, £547.97 for holiday pay)
- Claimant 2: £484.88 (£100.32 for unauthorised deductions, £384.56 for holiday pay)
- Claimant 3: £1,678.50 (£562.50 for unauthorised deductions, £1,116.00 for holiday pay)
- Total: £2,891.77
Lessons & takeaways
- You need at least two years' continuous service to bring an unfair dismissal claim, unless the dismissal is for an automatically unfair reason like whistleblowing or discrimination.
- Even if your unfair dismissal claim fails, you can still pursue other claims such as unauthorised deductions or holiday pay, which do not require a minimum service period.
- If an employer fails to respond to tribunal proceedings, the tribunal can enter a default judgment and award compensation without a full hearing.
- Keep records of your payslips and holiday entitlement to support claims for unauthorised deductions and unpaid holiday pay.
Service requirement blocks unfair dismissal claims
Three former employees brought claims for unfair dismissal, unauthorised deductions from wages, and unpaid holiday pay against their employer, David Paul Warnock. However, the tribunal struck out the unfair dismissal complaints at an early stage because none of the employees had completed two years' continuous service. Under section 108 of the Employment Rights Act 1996, this is a legal bar to bringing such a claim, unless the dismissal falls into an automatically unfair category (which was not argued here).
Default judgments for wage and holiday claims
While the unfair dismissal claims failed, the remaining claims succeeded by default. The employer did not submit a valid response to the tribunal, so the judge was able to decide the case based on the employees' evidence alone. The tribunal found that the employer had made unauthorised deductions from wages and failed to pay holiday entitlement, awarding a total of £2,891.77 across the three claims.
What this means for similar cases
This case highlights the importance of checking whether you have the required service before bringing an unfair dismissal claim. However, it also shows that employees can still recover unpaid wages and holiday pay even if they have been employed for less than two years. Employers who ignore tribunal proceedings risk having default judgments entered against them, which can lead to enforceable compensation orders.
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