Sales manager dismissed by P45 after months without pay: redundancy, not misconduct
A sales and operator manager with 11 years' service was unfairly dismissed when her employer stopped paying her and later claimed gross misconduct. The tribunal found the real reason was redundancy and awarded over £30,000.
1 min read · Last updated 18 May 2026
Case details
Key facts
- The claimant was employed as a Sales and Operator Manager from 24 August 2010 until 22 February 2022.
- The respondent ceased trading due to the pandemic and had no need for the claimant's role from October 2021.
- The claimant was not paid from October 2021 to February 2022, despite payslips being issued.
- The respondent claimed the claimant was dismissed for gross misconduct, but the tribunal found no evidence of a fair process.
- The claimant only learned of her dismissal on 22 February 2022 when she received her P45.
- The tribunal found the real reason for dismissal was redundancy, not misconduct.
Timeline
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Employment started
Claimant began working as a Sales Consultant for Interactive Resorts Ltd.
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Promotion to Sales and Operator Manager
Claimant was promoted and her salary was set at £38,000 basic plus commission.
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Furlough started
Claimant was placed on the government's furlough scheme due to the pandemic.
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Maternity leave started
Claimant went on maternity leave.
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Return from maternity leave
Claimant returned from maternity leave and was placed back on furlough until 30 September 2021.
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Non-payment of wages began
Claimant was not paid for October, November, and December 2021, despite an agreement to pay £2,500 per month.
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Phone call with Mr Morgan
Claimant spoke to Mr Morgan for 29 minutes; he did not inform her of any dismissal.
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Claimant learned of dismissal
Claimant received her P45 from the respondent's accountant, learning she was dismissed effective 30 November 2021.
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ET1 claim submitted
Claimant submitted her claim to the Employment Tribunal.
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Hearing day 1
First day of the substantive hearing before Employment Judge A Jack.
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Hearing day 2
Second day of the hearing; parties gave closing submissions.
The legal issue
The tribunal had to decide whether the claimant was unfairly dismissed and whether the employer's stated reason of gross misconduct was genuine, or whether the true reason was redundancy.
The outcome
The tribunal upheld the claimant's claims for unfair dismissal, redundancy payment, wrongful dismissal, unauthorised deductions from wages, unpaid holiday pay, and unpaid pension contributions.
Key reasons:
- The employer stopped paying the claimant from October 2021 but continued to issue payslips, and she only learned of her dismissal when she received a P45 in February 2022.
- The employer alleged gross misconduct but provided no evidence of any fair process or investigation.
- The tribunal found the real reason was redundancy: the business had ceased trading and had no need for her role.
Compensation breakdown:
- Redundancy payment: £5,984
- Wrongful dismissal (notice pay): £7,615.30
- Unauthorised deductions from wages: £12,727.40
- Unpaid holiday pay: £3,149.96
- Unpaid pension contributions: £610.28
- Total: £30,087.94
Lessons & takeaways
- If an employer stops paying you but keeps issuing payslips, it may be a sign of an impending dismissal without proper process.
- An employer cannot avoid redundancy obligations by dressing up a dismissal as gross misconduct without any evidence or investigation.
- You can bring multiple claims in one tribunal case, including for unpaid wages, holiday pay, and pension contributions.
- Keep records of all communications and payslips, as they can help prove when you were actually dismissed.
When a P45 is the first you hear of your dismissal
For 11 years, the claimant worked for Interactive Resorts Ltd, rising to Sales and Operator Manager. After the pandemic hit, she was furloughed, then took maternity leave, and returned to furlough. But from October 2021, her wages stopped — even though the company continued to issue payslips showing she was being paid. She was not told she had been dismissed until she received a P45 in the post on 22 February 2022, backdated to 30 November 2021.
The company's director claimed she had been dismissed for gross misconduct, but the tribunal found no evidence of any investigation or fair process. The real reason was redundancy: the business had ceased trading and no longer needed her role.
What the employer could have done differently
Interactive Resorts Ltd could have followed a proper redundancy process — consulting with the claimant, considering alternative roles, and giving notice. Instead, it stopped paying her, made no attempt to communicate a dismissal, and then invented a misconduct allegation that had no basis. The tribunal noted that the company's director gave inconsistent evidence and that the claim of gross misconduct was a 'sham'.
Why this matters
This case shows that employers cannot avoid their redundancy obligations by claiming misconduct without evidence. It also highlights that employees can bring a range of claims together — unfair dismissal, redundancy pay, wrongful dismissal, unpaid wages, holiday pay, and pension contributions — in one tribunal claim. For employees who have been left in the dark about their employment status, this judgment is a reminder that silence and non-payment do not make a dismissal lawful.
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