Unfair dismissal claim fails due to short service, but unpaid wages claim succeeds
A former employee with less than two years' service had their unfair dismissal claim struck out, but recovered £1,263 in unpaid wages after the employer failed to respond.
1 min read · Last updated 18 May 2026
Key facts
- The claimant was employed by the respondent for less than two years.
- The claimant's unfair dismissal claim was struck out due to insufficient service.
- The claimant also claimed unpaid salary, which does not require minimum service.
- The respondent failed to present a valid response to the unpaid wages claim.
- The tribunal ordered the respondent to pay £1263.05 for unauthorised deduction from wages.
Timeline
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Initial judgment striking out unfair dismissal claim
Employment Judge Buzzard struck out the unfair dismissal claim because the claimant had less than two years' service.
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Reconsideration judgment
Employment Judge Buzzard clarified that only the unfair dismissal claim was struck out; the unpaid salary claim would proceed.
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Default judgment on unpaid wages
Employment Judge Slater ordered the respondent to pay £1263.05 for unauthorised deduction from wages after the respondent failed to respond.
The legal issue
The tribunal had to decide whether the claimant had the required two years' service to bring an unfair dismissal claim, and whether the employer had made an unauthorised deduction from wages.
The outcome
The tribunal struck out the unfair dismissal claim because the claimant had less than two years' service, as required by section 108 of the Employment Rights Act 1996. However, the claim for unpaid wages was allowed to proceed and, after the employer failed to respond, a default judgment was entered ordering payment of £1,263.05.
- Unfair dismissal claim: struck out
- Unpaid wages claim: succeeded by default
- Compensation: £1,263.05 (unauthorised deduction from wages)
Lessons & takeaways
- Employees with less than two years' service cannot bring an unfair dismissal claim, but can still claim unpaid wages or breach of contract.
- Employers who fail to respond to a tribunal claim risk a default judgment ordering them to pay the full amount claimed.
- Even if an employer is in voluntary liquidation, the tribunal can still make an award for unpaid wages.
This case shows how employment rights depend on length of service. The former employee had worked for The Beehive (Penrith) Ltd for less than two years, which meant they could not bring an unfair dismissal claim. The tribunal struck out that part of the claim, as the law requires at least two years' continuous service to qualify for unfair dismissal protection.
However, the employee also claimed unpaid wages. Unlike unfair dismissal, there is no minimum service requirement for a claim of unauthorised deduction from wages. The tribunal allowed that claim to proceed, and when the employer failed to submit a valid response, a default judgment was issued. The employer was ordered to pay £1,263.05.
What the employer could have done differently
The employer could have avoided the default judgment by responding to the claim. Even if they disputed the amount owed, filing a response would have allowed the tribunal to consider their side. By failing to respond, they lost the chance to argue their case.
Why this matters
This case is a reminder that employees with short service still have some legal protections. While they cannot claim unfair dismissal, they can pursue claims for unpaid wages, holiday pay, or other contractual sums. Employers should take all tribunal claims seriously, regardless of the employee's length of service, as failing to respond can lead to a binding judgment.
The case also highlights that a company in voluntary liquidation is not immune from tribunal awards. The judgment was made against the company, and the employee can seek to enforce it through the liquidation process.
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