Redundancy dismissal with unpaid holiday pay: a successful claim for notice and holiday pay
A former employee of Mayfair Residential Care Home Ltd won claims for unfair dismissal, redundancy payment, and unpaid holiday pay, receiving £2,455.39 in total.
1 min read · Last updated 18 May 2026
Case details
Key facts
- The claimant was dismissed by reason of redundancy.
- The respondent failed to pay the claimant's holiday entitlement.
- The claimant was dismissed in breach of contract in respect of notice.
- The claim of unfair dismissal succeeded but no compensatory award was made due to credit for notice damages.
- No basic award entitlement arose due to the redundancy payment.
Timeline
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Initial judgment
Employment Judge Maidment issued a Rule 21 judgment ordering damages for breach of contract (£865.38), redundancy payment (£1298.07), and holiday pay (£1096.14).
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Judgment sent to parties
The initial judgment was sent to the parties.
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Reconsideration hearing
A hearing was held at Leeds by CVP before Employment Judge Maidment to reconsider the holiday pay amount.
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Varied judgment
The judgment was varied to substitute £291.94 for the holiday pay amount of £1096.14.
The legal issue
The tribunal had to decide whether the employee was unfairly dismissed, entitled to a redundancy payment, and owed unpaid holiday pay and notice pay.
The outcome
The tribunal ruled in favour of the former employee on all claims: unfair dismissal, redundancy payment, breach of contract (notice pay), and unpaid holiday pay.
Key reasons:
- The employee was dismissed by reason of redundancy, triggering entitlement to a statutory redundancy payment.
- The employer failed to pay the employee's accrued holiday pay.
- The employer dismissed without giving proper notice, amounting to breach of contract.
Compensation breakdown:
- Damages for breach of contract (notice pay): £865.38
- Redundancy payment: £1,298.07
- Holiday pay: £291.94 (varied from original £1,096.14 on reconsideration)
- Total: £2,455.39
- No compensatory award for unfair dismissal because credit was given for notice damages; no basic award because redundancy payment was made.
Lessons & takeaways
- Employers must pay statutory redundancy payments when making an employee redundant, even if the dismissal is procedurally unfair.
- Failure to pay accrued holiday pay on termination is a breach of the Working Time Regulations and can be claimed.
- Dismissing an employee without proper notice gives rise to a claim for damages for breach of contract.
- A successful unfair dismissal claim may not result in additional compensation if the employee has already been compensated for notice pay and redundancy.
This case shows what can happen when an employer makes an employee redundant but fails to follow through on basic legal obligations: paying notice, holiday pay, and the statutory redundancy payment. The former employee brought claims for unfair dismissal, breach of contract, unpaid holiday pay, and a redundancy payment – and succeeded on all counts.
What the employer did wrong
The employer, Mayfair Residential Care Home Ltd, dismissed the employee by reason of redundancy but did not pay the statutory redundancy payment owed. They also failed to pay the employee's accrued holiday pay and dismissed without giving proper notice. These are straightforward legal requirements that any employer should meet when making a redundancy.
Why the result matters
The tribunal awarded a total of £2,455.39, comprising £865.38 for notice pay, £1,298.07 for the redundancy payment, and £291.94 for holiday pay (reduced from an initial £1,096.14 on reconsideration). Although the unfair dismissal claim succeeded, no additional compensatory award was made because the notice damages already covered the loss, and the redundancy payment meant no basic award was due. This highlights that even when an unfair dismissal claim is won, the practical compensation may be limited if other payments have already been made.
For employees facing redundancy, this case is a reminder that employers must honour their statutory duties. For employers, it underscores that cutting corners on redundancy procedures can lead to multiple successful claims and a bill for unpaid sums.
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