Pub manager dismissed during pandemic wins £18,000 for unpaid wages and holiday pay
A public house manager with 17 years' service was made redundant when the pub closed during COVID-19. The tribunal upheld the redundancy but awarded £17,936.55 for National Minimum Wage underpayments, notice pay, and holiday pay.
1 min read · Last updated 18 May 2026
Case details
- #redundancy
- #national-minimum-wage
- #unlawful-deduction
- #holiday-pay
- #furlough
- #accommodation-offset
Key facts
- The claimant was employed as a pub manager from 26 July 2003 until 19 February 2021.
- The business closed due to the COVID-19 pandemic and the claimant was dismissed by reason of redundancy.
- The claimant worked 40 hours per week from February 2011 but was paid only £795 per month, with £295 deducted for accommodation.
- The respondent failed to pay the National Minimum Wage from 29 August 2019 to 18 February 2021.
- The claimant was not paid for accrued holiday entitlement from April 2020 to termination.
- The claimant received a total award of £17,936.55 for notice pay, unlawful deductions, and holiday pay.
Timeline
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Employment started
Claimant began working as a pub manager for the respondent.
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Hours increased
Claimant's hours increased to 40 per week after the death of his partner; accommodation charge of £295 per month introduced.
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National lockdown
UK entered lockdown; hospitality venues closed.
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Furlough started
Claimant placed on furlough, receiving £636 per month (80% of £795).
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Warning of closure
Respondent warned claimant that he could only afford to pay rent for a little longer.
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Termination date
Respondent told claimant he was being made redundant; employment ended.
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Letter drafted
Respondent drafted a letter confirming termination but did not give it to claimant until 6 April 2021.
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Claimant moved out
Claimant left the accommodation; last furlough payment received.
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Claim presented
Claimant presented his claim to the employment tribunal.
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Hearing
Hybrid hearing at Cambridge Employment Tribunal before Employment Judge Douse.
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Liability judgment
Judgment on liability issued.
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Remedy judgment
Remedy judgment issued, ordering payment of £17,936.55.
The legal issue
The tribunal had to decide whether the claimant was unfairly dismissed by reason of redundancy, whether the employer made unlawful deductions by failing to pay the National Minimum Wage, and whether the claimant was entitled to payment for untaken holiday.
The outcome
The tribunal dismissed the unfair dismissal claim, accepting that a genuine redundancy situation existed due to the pub's closure during the pandemic. However, it found that the employer had made unlawful deductions from wages by paying below the National Minimum Wage from August 2019 to February 2021, and had failed to pay notice pay and accrued holiday pay.
Compensation awarded:
- Notice pay
- Unlawful deductions (National Minimum Wage arrears)
- Holiday pay
- Total: £17,936.55
Lessons & takeaways
- Employers must ensure they pay at least the National Minimum Wage for all hours worked, including any additional hours beyond the contract.
- A genuine redundancy situation does not automatically make a dismissal fair if proper procedure is not followed, but here the lack of process was not challenged.
- Employees should keep records of hours worked, especially if they exceed contracted hours, to support wage claims.
- Furlough payments do not extinguish an employer's obligation to pay the correct minimum wage for hours actually worked before or after furlough.
A redundancy with hidden costs
When the pandemic forced a Cambridgeshire pub to close in March 2020, the public house manager was placed on furlough. A year later, the owner told him he was being made redundant. The manager, who had worked there for 17 years, accepted that the redundancy was genuine but claimed he had been underpaid for years.
The tribunal agreed that the dismissal was fair — the business could not reopen — but it uncovered a significant wage problem. The manager had been working 40 hours a week since 2011 but was paid only £795 per month, with £295 deducted for accommodation. This meant his pay fell below the National Minimum Wage from August 2019 onwards.
What the employer could have done differently
The employer could have avoided the wage claim by regularly checking that the manager's pay met minimum wage requirements, especially after his hours increased. Keeping accurate records of hours worked would also have helped. The tribunal noted that no written records of hours were kept by either party, which made the dispute harder to resolve.
Why this case matters
This case shows that even when a redundancy is genuine, employers cannot overlook basic wage obligations. The manager's long service (17 years) did not save his job, but it did entitle him to proper notice pay and holiday pay on termination. For employees, it highlights the importance of checking payslips and understanding minimum wage rules — especially when hours change. For employers, it is a reminder that failing to pay the minimum wage can lead to claims for unlawful deductions, even years after the underpayment began.
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