Dismissed without notice by company in liquidation: employee wins £10,487
A former employee of Chartwell Salon Supply Limited, which went into compulsory liquidation, has been awarded £10,487 after being dismissed without notice. The tribunal found the dismissal unfair and ordered payment for notice, holiday pay and unpaid wages.
1 min read · Last updated 18 May 2026
Case details
- #unfair-dismissal
- #wrongful-dismissal
- #notice-pay
- #holiday-pay
- #unauthorised-deductions
- #compulsory-liquidation
Key facts
- The claimant was dismissed on 2 September 2020 without notice.
- The respondent was in compulsory liquidation and did not attend the hearing.
- The claimant had already received a redundancy payment.
- The tribunal found that a fair procedure would have led to dismissal on 30 November 2020 with 12 weeks' notice.
- The respondent failed to pay notice pay, holiday pay, and wages for the period 31 July to 2 September 2020.
Timeline
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Last payment by respondent
The claimant was paid up until 31 July 2020.
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Dismissal without notice
The claimant was dismissed on 2 September 2020 without notice.
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Hypothetical fair dismissal date
The tribunal found that had a fair procedure been followed, the claimant would have been dismissed on 30 November 2020 with 12 weeks' notice.
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Permission to pursue claims
District Judge Singh approved an order granting the claimant permission to pursue claims against the respondent.
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Respondent confirms non-attendance
The Official Receiver emailed the tribunal confirming they would not attend the hearing.
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Hearing and judgment
The employment tribunal heard the case and issued a judgment in favor of the claimant.
The legal issue
The tribunal had to decide the effective date of dismissal and whether the claimant was unfairly dismissed, as well as claims for wrongful dismissal (notice pay), unpaid holiday pay and unpaid wages.
The outcome
The tribunal ruled in favour of the former employee on all claims. It found that the effective date of dismissal was 2 September 2020, not 31 July 2020 as the respondent had alleged. The dismissal was unfair because the respondent failed to follow any procedure. Had a fair procedure been followed, the claimant would have been dismissed on 30 November 2020 with 12 weeks' notice.
Compensation awarded:
- Basic award: £0 (already received a redundancy payment)
- Loss of statutory rights: £500
- Compensatory award: £4,287.88 (covering 12 weeks and 4 days from 2 September to 30 November 2020)
- Wrongful dismissal (notice pay): £4,019.88 (12 weeks' net pay)
- Holiday pay: £139.34
- Unpaid wages (31 July to 2 September 2020): £1,540.77
- Total: £10,487.87
Lessons & takeaways
- If your employer goes into liquidation, you may still be able to pursue an unfair dismissal claim with permission from the court.
- The effective date of dismissal matters – if you are dismissed without notice, your employment continues until the date you are actually told you are dismissed.
- Keep records of all communications and pay slips, as these can help prove the true date of dismissal and any unpaid wages or holiday pay.
- Even if your employer does not attend the hearing, the tribunal can still make a judgment based on the evidence you provide.
When a company goes under, employees still have rights
This case shows that even when an employer enters compulsory liquidation and fails to defend itself, employees can still secure compensation for unfair dismissal and breach of contract. The former employee of Chartwell Salon Supply Limited was dismissed without notice on 2 September 2020, after the company had stopped paying wages on 31 July. The respondent did not attend the hearing, but the tribunal proceeded on the basis of the claimant's evidence.
What the employer could have done differently
Had the company followed a fair procedure – such as consulting with the employee and giving proper notice – the dismissal would have been lawful. The tribunal calculated that a fair process would have resulted in dismissal on 30 November 2020 with 12 weeks' notice. Instead, the employer's failure to pay notice, holiday pay and final wages led to a total award of over £10,000.
Why this result matters
This judgment reinforces that the effective date of dismissal is the date the employee is actually told they are dismissed, not an earlier date the employer might claim. It also confirms that unpaid wages and holiday pay can be claimed alongside unfair dismissal. For employees facing redundancy when a company is in liquidation, it is worth seeking legal advice and, if necessary, permission from the court to pursue claims.
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