Removed from payroll without warning: constructive unfair dismissal win for HR manager
A human resources manager was awarded £7,222 after her employer removed her from the payroll without notice, refused holiday leave, and underpaid her for months. The tribunal upheld her claim of constructive unfair dismissal.
1 min read · Last updated 18 May 2026
Case details
- #constructive-dismissal
- #unpaid-wages
- #holiday-pay
- #payslips
- #acas-code-uplift-denied
- #furlough
Key facts
- The claimant was employed as a human resources manager from 30 September 2019 until 25 July 2022.
- The claimant discovered on 25 July 2022 that she had been removed from the respondent's payroll.
- The respondent refused to allow the claimant to take annual leave throughout her employment.
- The claimant was underpaid wages from October 2021 to July 2022.
- The respondent failed to provide itemised payslips for most months of employment.
- The respondent did not attend the hearing and did not respond to the claim.
Timeline
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Employment started
Claimant began working as a human resources manager for 20 hours per week at £9.10 per hour.
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Pension opt-in request
Claimant told respondent she wished to join the workplace pension scheme, but respondent never enrolled her.
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Furlough started
Claimant was furloughed under the government scheme until 30 September 2021.
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Underpayments began
From October 2021 to July 2022, claimant was underpaid wages each month.
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National minimum wage increase
Claimant's hourly rate increased to £9.50 due to NMW changes.
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Removed from payroll
Claimant discovered she was no longer on respondent's payroll and ceased working.
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Grievance raised
Claimant raised a grievance with respondent, which remained unanswered.
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Claim issued
Claimant issued proceedings for unpaid wages and unfair dismissal.
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Hearing
Full merits hearing at East London Hearing Centre; respondent did not attend.
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Judgment
Employment Judge Anderson reserved judgment in favour of claimant.
The legal issue
Whether the employer's conduct – including removing the claimant from payroll, refusing annual leave, and underpaying wages – amounted to a fundamental breach of contract that justified her resignation and constituted constructive unfair dismissal.
The outcome
The tribunal upheld the claimant's claims of constructive unfair dismissal, unlawful deduction from wages, unpaid holiday pay, and breach of contract for failure to pay notice pay. The claim for unpaid pension contributions was dismissed.
Compensation awarded:
- Basic award: £380.00
- Compensatory award (including notice pay and loss of earnings): £2,010.00
- Unpaid holiday pay: £2,997.20
- Unauthorised deductions from wages: £1,834.94
- Total: £7,222.14
The tribunal declined to apply an ACAS Code uplift because the respondent did not attend and the claim was not contested.
Lessons & takeaways
- Removing an employee from the payroll without warning or discussion is likely to be a fundamental breach of contract, giving rise to a constructive dismissal claim.
- Employers must provide itemised payslips and allow employees to take their statutory annual leave – failing to do so can lead to multiple claims.
- Even if an employer ignores proceedings, the tribunal can still award compensation based on the claimant's evidence if it is credible and well-documented.
- Claimants should keep detailed records of underpayments, leave requests, and any communications with their employer to support their case.
- The ACAS Code of Practice on disciplinary and grievance procedures applies even if the employer fails to engage – but an uplift may not be granted if the employer does not attend and there is no evidence of deliberate non-compliance.
When an employer simply removes you from the payroll
This case shows what can happen when an employer stops paying an employee without any discussion or warning. The claimant, a human resources manager working 20 hours a week, discovered on 25 July 2022 that she had been taken off the respondent's payroll. She had already been underpaid for ten months and had been refused annual leave throughout her employment. After raising a grievance that went unanswered, she resigned and brought claims for constructive unfair dismissal and unpaid wages.
What the employer did wrong
The respondent, SM Sparkling Services Limited, did not attend the hearing or respond to the claim. The tribunal relied on the claimant's detailed evidence, which showed a pattern of non-payment, failure to provide payslips, and refusal to allow holiday. The removal from payroll was the final straw – a fundamental breach of contract that entitled the claimant to treat herself as dismissed. The tribunal also found that the respondent had made unlawful deductions from wages and failed to pay holiday pay.
Why this result matters
This case is a reminder that employers cannot simply stop paying an employee or ignore their statutory rights. Even when an employer fails to defend a claim, the tribunal will assess the evidence and award compensation if the claim is well-founded. The total award of £7,222.14 included compensation for unpaid holiday, underpaid wages, and notice pay. The claim for pension contributions was dismissed because the tribunal found it was not sufficiently particularised in the original claim form.
For employees, this case highlights the importance of keeping clear records of pay, leave requests, and any communications with their employer. For employers, it shows that ignoring tribunal proceedings does not make the problem go away – and can result in a judgment that includes all the losses the employee can prove.
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