Redundancy dismissal and unauthorised deductions: employer's failure to respond leads to £15,298 award
A former employee won £15,298 after being unfairly dismissed by redundancy and having wages unlawfully deducted. The employer failed to present a valid response.
1 min read · Last updated 18 May 2026
Case details
Key facts
- The respondent failed to present a valid response on time.
- The respondent made an unauthorised deduction from the claimant's wages of £1692.36.
- The claimant was dismissed by reason of redundancy.
- The claimant was dismissed in breach of contract in respect of notice.
- The respondent failed to pay the claimant's accrued annual leave entitlement.
- The claimant's claim of unfair dismissal succeeded.
Timeline
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Dismissal
The claimant was dismissed by reason of redundancy.
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Start of prescribed period
The prescribed element for recoupment starts from this date.
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End of prescribed period
The prescribed element for recoupment ends on this date.
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Future loss period start
Future loss of earnings calculated from this date.
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First judgment
Employment Judge Phil Allen issued a judgment on liability and some remedies.
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Remedy hearing
Employment Judge Shotter determined the remedy for unfair dismissal.
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Judgment sent
The remedy judgment was sent to the parties.
The legal issue
The tribunal had to decide whether the claimant was unfairly dismissed by reason of redundancy and what compensation was due, including for breach of contract and unauthorised wage deductions.
The outcome
The tribunal ruled in favour of the former employee on all claims.
- Unfair dismissal succeeded. Compensation of £15,298.75 was awarded.
- The employer made an unauthorised deduction of £1,692.36 from wages.
- Breach of contract for notice period: £1,518.
- Redundancy payment: £1,518.
- Accrued annual leave: £508.14.
- The recoupment regulations apply to £5,923.08 of the award.
Lessons & takeaways
- Employers who fail to submit a valid response to a tribunal claim risk having a default judgment entered against them.
- Unauthorised deductions from wages, even if small, can be challenged and recovered through a tribunal claim.
- Employees dismissed by redundancy are entitled to a statutory redundancy payment if they have at least two years' service.
- Accrued but untaken annual leave must be paid on termination, regardless of the reason for dismissal.
What this case shows in practice
This case demonstrates what can happen when an employer fails to engage with tribunal proceedings. The former employee brought claims for unfair dismissal, breach of contract, unauthorised deductions, and unpaid holiday pay after being made redundant. The employer, Dannii Matthews Limited, did not present a valid response, so the tribunal was able to decide the claims without their input.
The tribunal found that the redundancy dismissal was unfair, and that the employer had also made an unauthorised deduction from wages and failed to pay notice pay, a redundancy payment, and accrued holiday pay.
What the employer could have done differently
Had the employer responded, they might have been able to argue that the redundancy was fair or challenge the amounts claimed. By failing to participate, they lost the opportunity to present their side. The tribunal awarded the full amounts sought by the claimant.
Why this matters for similar claims
This case is a reminder that employees who are made redundant may have multiple claims, not just for unfair dismissal. Wage deductions, notice pay, and holiday pay are all enforceable rights. It also shows that tribunals can proceed without the employer if they do not respond, making it easier for claimants to obtain a judgment.
The total compensation of £15,298.75 includes loss of earnings, future loss of earnings, pension contributions, and loss of statutory rights. The recoupment regulations mean that some of this sum may need to be repaid to the Department for Work and Pensions if the claimant received benefits.
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