Unfair dismissal during redundancy: employer failed to pay notice and holiday pay

Redundancy gone wrong: what happens when an employer cuts corners

This case shows how a seemingly straightforward redundancy can unravel when an employer ignores basic legal obligations. The former employee, who had worked for PYD Packaging Limited for five years, was dismissed in December 2021. The tribunal found that the employer did not follow a fair process – there was no evidence of proper consultation or objective selection criteria, making the dismissal unfair.

What the employer could have done differently

The employer's failures went beyond the redundancy process. They did not pay the employee his contractual notice pay (five weeks' worth) nor his accrued holiday pay for multiple years. The tribunal also noted that the employer had never provided a written statement of employment terms, a basic requirement under the Employment Rights Act 1996. Perhaps most damaging was the employer's unreasonable failure to follow the ACAS Code of Practice, which led to a 25% uplift on the compensatory award.

Why this result matters

The total award of over £10,000 – including £5,952 in holiday pay – reflects the cumulative impact of multiple breaches. While the employee's claims for statutory redundancy pay and unlawful deduction of wages failed, the successful claims demonstrate that tribunals will hold employers accountable for fundamental failures in process and payment. For employees facing redundancy, this case reinforces the importance of checking whether you have received all pay owed, including notice and holiday pay, and whether the employer followed a fair procedure.