Redundancy dismissal leads to awards for breach of contract and holiday pay
An employee with 7 years' service was unfairly dismissed by reason of redundancy and awarded over £7,500 for breach of contract, redundancy payment, and unpaid holiday pay.
1 min read · Last updated 18 May 2026
Case details
- #breach-of-contract
- #redundancy
- #unfair-dismissal
- #working-time-regulations
- #accrued-holiday-pay
Key facts
- The claimant was dismissed by reason of redundancy.
- The respondent failed to pay the claimant's accrued annual leave entitlement of 12.33 days.
- The claimant was dismissed in breach of contract in respect of notice.
- The claimant had 7 years of service and was aged between 22 and 41.
- The claimant's unfair dismissal claim succeeded, with remedy to be determined later.
Timeline
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Judgment issued
Employment Judge Phil Allen issued a judgment finding the claimant was dismissed by reason of redundancy, in breach of contract, and entitled to accrued holiday pay. The unfair dismissal claim succeeded, with remedy to be determined at a later hearing.
The legal issue
The tribunal had to decide whether the claimant was unfairly dismissed, whether she was entitled to a redundancy payment, whether she was dismissed in breach of contract, and whether she was owed accrued holiday pay.
The outcome
The tribunal found in favour of the claimant on all claims.
- The claimant was dismissed by reason of redundancy and was entitled to a redundancy payment of £3,187.38.
- The dismissal was in breach of contract in respect of notice, resulting in damages of £3,187.38.
- The respondent failed to pay the claimant's accrued annual leave entitlement of 12.33 days, amounting to £1,180.
- The unfair dismissal claim succeeded, with remedy to be determined at a later hearing.
Lessons & takeaways
- Employees with at least 2 years' service are entitled to a statutory redundancy payment if dismissed by reason of redundancy.
- Employers must give proper notice or pay in lieu, and failure to do so is a breach of contract.
- Accrued but untaken holiday pay must be paid on termination, regardless of the reason for dismissal.
- A successful unfair dismissal claim can lead to additional compensation beyond the basic award.
What this case shows in practice
This case demonstrates the importance of employers following proper procedures when making redundancies. The former employee, who had worked for Constanter Limited for seven years, was dismissed by reason of redundancy. However, the employer failed to pay her notice pay, redundancy payment, and accrued holiday leave, leading to multiple successful claims.
What the losing side could have done differently
Constanter Limited could have avoided this outcome by ensuring they complied with their contractual and statutory obligations. This includes giving the correct notice period (or pay in lieu), making a statutory redundancy payment based on age and length of service, and paying for any accrued but untaken holiday. The tribunal found that the dismissal was unfair, which may have been avoided with a fair redundancy process.
Why the result matters for similar claims
This case serves as a reminder that redundancy dismissals must be handled correctly. Employees with at least two years' service are entitled to a statutory redundancy payment, and all employees are entitled to notice pay and holiday pay on termination. The total award of £7,564.76 reflects these basic entitlements, and the successful unfair dismissal claim may lead to further compensation.
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