Unfair redundancy dismissal: former employee awarded over £8,000 for unpaid wages and holiday pay
A former employee of Crest Communication Limited was unfairly dismissed by reason of redundancy and awarded £8,097.31 for unpaid wages, holiday pay, and unfair dismissal compensation.
1 min read · Last updated 18 May 2026
Case details
Key facts
- The claimant was employed by Crest Communication Limited.
- The claimant was dismissed by reason of redundancy on 30 November 2021.
- The claimant obtained new employment on 24 January 2022.
- The respondent failed to pay wages for November 2021 and accrued holiday pay.
- The respondent initially failed to provide a written statement of terms, but later proved one had been provided.
- The ACAS Code does not apply to redundancy dismissals.
Timeline
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Dismissal
The claimant was dismissed by reason of redundancy.
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New employment
The claimant obtained new employment, ending the period of loss.
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Original judgment
Employment Judge Laidler issued the original judgment awarding £10,153.31 including an award for failure to provide written statement.
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Reconsideration application
The respondent applied for reconsideration of the judgment.
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Reconsideration hearing
The tribunal varied the judgment, removing the award for failure to provide written statement, reducing total to £8,097.31.
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Reconsideration judgment sent
The varied 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 should be awarded, including whether the respondent failed to provide a written statement of terms (which was later proven to have been provided).
The outcome
The tribunal found that the claimant was unfairly dismissed by reason of redundancy. The respondent had failed to pay wages for November 2021 and accrued holiday pay. The total award was £8,097.31, broken down as follows:
- Unpaid wages (November 2021): £2,227.33 gross
- Accrued holiday pay: £617 gross
- Basic award: £1,542 (3 weeks' pay at £514 per week)
- Compensatory award: £3,710.98 (8 weeks' loss at £401.37 net per week, plus £500 loss of statutory rights)
The original award for failure to provide a written statement was removed on reconsideration as the respondent proved one had been provided.
Lessons & takeaways
- Employers must ensure they follow a fair redundancy process, including proper consultation and selection criteria, to avoid a finding of unfair dismissal.
- Failure to pay wages and holiday pay due on termination can lead to separate claims for unlawful deductions from wages.
- Even if a redundancy is genuine, the dismissal can still be unfair if the process is flawed, and compensation will reflect losses until the employee finds new work.
- The ACAS Code of Practice on disciplinary and grievance procedures does not apply to redundancy dismissals, so no uplift for non-compliance is available.
Redundancy dismissal leads to compensation for unpaid wages and holiday pay
This case shows that even when a redundancy is genuine, a failure to follow a fair process can result in a finding of unfair dismissal. The former employee of Crest Communication Limited was dismissed on 30 November 2021 by reason of redundancy, but the tribunal found the dismissal was unfair. The company also failed to pay the employee's wages for November 2021 and accrued holiday pay, leading to additional claims.
What the employer could have done differently
The employer could have avoided the unfair dismissal finding by ensuring a proper redundancy process, including meaningful consultation and objective selection criteria. Paying all wages and holiday pay due on termination would have prevented the separate claims for unlawful deductions. The employer also initially failed to provide a written statement of terms, though this was later proven to have been provided, so that award was removed on reconsideration.
Why this matters for similar claims
This case highlights that employees dismissed by reason of redundancy can still bring unfair dismissal claims if the process is flawed. The compensation covers losses until the employee finds new work, which in this case was just under two months. The award also included unpaid wages and holiday pay, which are common claims in termination disputes. The total award of £8,097.31 reflects the losses suffered by the employee, and the case serves as a reminder that employers must follow proper procedures and meet all payment obligations.
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