Pay withheld for two weeks: constructive dismissal over non-payment of wages
A Process Manager who had his entire fortnightly pay withheld was constructively dismissed. The Watford tribunal awarded him £54,819.16 for unfair dismissal, notice pay, and pay statement breaches.
1 min read · Last updated 18 May 2026
Case details
- #constructive-dismissal
- #non-payment-of-wages
- #notice-pay
- #holiday-pay
- #pay-statements
- #health-and-safety-detriment
Key facts
- The claimant worked as a Process Manager from June 2016 until April 2021.
- In April 2021, the respondent withheld the claimant's entire fortnightly pay of £1,500 net.
- The claimant withdrew his labour on 23 April 2021 and did not return to work.
- The claimant participated in meetings to resolve the pay issue but did not affirm the contract.
- The respondent later paid the owed amount and attempted to have the claimant return to work.
- The claimant's payslips did not reflect his true earnings, as part was paid in cash.
Timeline
-
Employment started
Mr Kalkan began working for TFC Holdings London Limited as a Process Manager.
-
Heart condition and stent operation
The claimant required a stent in his artery due to heart problems and travelled to Turkey for the operation.
-
Pay withheld
The respondent withheld the claimant's entire fortnightly pay of £1,500 net.
-
Claimant withdrew labour
The claimant stopped working and emailed HR requesting written reasons for the non-payment.
-
Meeting at claimant's home
HR consultant Mr Akkaya and general manager Mr Varlik met the claimant to discuss compensation and a possible settlement.
-
Further meeting
Another meeting was held at the claimant's home to discuss settlement.
-
Claimant wrote to HR
The claimant emailed HR stating he was 'fired' and would claim constructive dismissal.
-
Respondent asked claimant to rescind resignation
The respondent wrote to the claimant asking if he wanted to return to work and offered a grievance meeting.
-
Claimant denied resigning
The claimant replied that he had not resigned and would not explain further.
-
Claimant dismissed for absence
The respondent wrote to the claimant stating he was dismissed for failing to attend work and not responding to management requests.
The legal issue
The tribunal had to decide whether the employer's failure to pay wages amounted to a fundamental breach of contract, and whether the employee's resignation in response was within a reasonable time.
The outcome
The tribunal upheld the claim for constructive unfair dismissal, finding that the employer's withholding of wages was a fundamental breach. The claimant resigned in response and did not affirm the contract.
Compensation:
- Basic award: £2,720.00
- Compensatory award: £47,762.00
- Notice pay and pay statement breaches: additional amounts included in total
- Total: £54,819.16
Lessons & takeaways
- Withholding an employee's wages without good reason is likely to be a fundamental breach of contract, giving rise to a constructive dismissal claim.
- Employees who resign in response to a breach should do so promptly and avoid affirming the contract by continuing to work or accepting benefits.
- Employers must ensure payslips accurately reflect all earnings, including cash payments, to comply with section 8 of the Employment Rights Act 1996.
- Even if the employer later pays the owed amount, the initial breach may still justify a constructive dismissal claim if the employee has already resigned.
When non-payment of wages leads to constructive dismissal
This case shows how a single act of withholding wages can unravel the employment relationship. The Process Manager had worked for TFC Holdings London Limited for five years when, in April 2021, the company failed to pay his fortnightly salary of £1,500 net. No explanation was given at the time. The employee stopped work and emailed HR requesting written reasons, but the company did not provide a satisfactory response.
The tribunal found that this non-payment was a fundamental breach of contract. The employee did not affirm the contract by continuing to work or accepting the later payment; instead, he resigned within a reasonable time. The employer's subsequent attempts to have him return did not undo the breach.
What the employer could have done differently
The employer could have avoided the claim entirely by paying the wages on time. Even after the non-payment, a prompt, clear explanation and apology might have prevented the resignation. Instead, the company waited until after the employee had withdrawn his labour to offer payment and a grievance meeting. The tribunal also noted that the employee's payslips did not reflect his true earnings, as part was paid in cash — a breach of the requirement for accurate pay statements.
Why this matters for similar claims
Constructive dismissal claims often turn on whether the employer's conduct was serious enough to justify resignation. Withholding wages is one of the clearest examples of a fundamental breach. Employees who experience non-payment should act quickly and document their response. For employers, the message is simple: pay what is owed, when it is owed, and ensure payslips are accurate. Failure to do so can result in significant compensation awards, as seen here with a total of over £54,000.
Similar cases
Care worker awarded £31,000 after constructive dismissal and unpaid holiday
A care worker was constructively unfairly dismissed by Reach Care Services Limited, which was in voluntary liquidation. The tribunal awarded £31,222.97 for unfair dismissal and unpaid holiday pay.
Security guard wins constructive dismissal after 10 weeks' service
A security guard who resigned after just 10 weeks has been awarded £5,892 by an employment tribunal for constructive unfair dismissal, including notice pay and pension loss.
Restaurant employee wins £2,579 for unpaid wages and holiday pay after constructive dismissal
An employee who resigned after four months due to constructive dismissal has been awarded £2,579 for unpaid wages, holiday pay, and notice pay. The restaurant company, now in liquidation, failed to pay her final earnings.
Constructive dismissal after unauthorised wage deductions: employer struck out for non-attendance
A former employee won a constructive unfair dismissal claim after his employer failed to pay wages, holiday pay and notice pay. The tribunal awarded over £14,000 after the employer's response was struck out for non-attendance.