Head of Operations dismissed while on furlough after maternity leave: unfair redundancy
A tribunal found that Vespertine Holidays Ltd unfairly dismissed a Head of Operations with 16 years' service, who discovered her redundancy only when she received a P45. She was awarded £34,282.
1 min read · Last updated 18 May 2026
Case details
Key facts
- The claimant was employed for over 16 years as Head of Operations.
- The claimant was on maternity leave from July 2020 to April 2021, then furloughed until December 2021.
- The respondent did not pay the claimant's wages for October, November, and December 2021.
- The claimant was not informed of any disciplinary proceedings and discovered her dismissal via a P45 on 30 January 2022.
- The tribunal found that the respondent's financial difficulties, not misconduct, were the real reason for dismissal.
- The respondent failed to follow any fair procedure or provide notice of dismissal.
Timeline
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Maternity leave begins
Claimant started maternity leave.
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Maternity leave ends
Claimant's maternity leave ended; she was placed on furlough.
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Extended furlough begins
Claimant agreed to remain on furlough at 80% pay for October to December 2021.
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First contact about unpaid wages
Claimant texted respondent about October pay, which was not paid.
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Phone call about pay
Respondent told claimant he did not know when he could pay her; no mention of disciplinary proceedings.
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Claimant discovers dismissal
Claimant received P45 from respondent's accountant, learning she was dismissed effective 30 November 2021.
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Claimant attempts contact
Claimant tried to contact respondent but received no response.
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New job starts
Claimant started a new job at a lower salary of £34,000 per annum.
The legal issue
The tribunal had to decide whether the claimant was unfairly dismissed and whether the reason was misconduct or redundancy, and whether the respondent made unlawful deductions from wages, including unpaid wages, holiday pay, and pension contributions.
The outcome
The tribunal upheld the claimant's claims for unfair dismissal, redundancy pay, wrongful dismissal (notice pay), unauthorised deductions from wages, unpaid holiday pay, and unpaid pension contributions.
Compensation breakdown:
- Redundancy pay: £8,976
- Wrongful dismissal (notice pay): £9,249
- Unauthorised deductions from wages: £10,481
- Unpaid holiday pay: £4,984
- Unpaid pension contributions: £592
- Total: £34,282
Lessons & takeaways
- Employers must follow a fair redundancy process, including consultation and notice, even during financial difficulties.
- Dismissing an employee without informing them and only sending a P45 is likely to be found unfair and procedurally flawed.
- Employees on maternity leave or furlough retain full employment rights and cannot be dismissed without proper process.
- Failure to pay wages, holiday pay, and pension contributions can lead to separate claims for unlawful deductions.
A dismissal discovered by post
This case highlights what can happen when an employer fails to communicate properly with a long-serving employee. The Head of Operations had worked for Vespertine Holidays Ltd for over 16 years. After returning from maternity leave, she agreed to remain on furlough during the pandemic. But instead of being kept informed about the company's financial troubles, she was simply not paid for three months. She only learned she had been dismissed when a P45 arrived in the post.
What the employer did wrong
The tribunal found that the real reason for dismissal was redundancy, not misconduct as the employer later suggested. However, the employer carried out no consultation, gave no notice, and did not even tell the claimant she was being dismissed. The tribunal described the procedure as wholly inadequate. The employer also failed to pay outstanding wages, holiday pay, and pension contributions, leading to separate claims for unlawful deductions.
Why this matters
For employees, this case is a reminder that even during financial hardship, employers must follow a fair process. Dismissing someone without warning or discussion is likely to be unfair. For employers, it shows that cutting corners on procedure can be costly – the total award here was over £34,000. The case also underscores that employees on maternity leave and furlough retain full protection against unfair dismissal.
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