Former employee awarded £5,421 after restaurant failed to pay notice, pension and holiday
A former employee of HYPHA Restaurants Limited has won £5,421.70 after the company dismissed her with only one week's notice instead of the contractual month, and failed to pay pension contributions and holiday pay.
1 min read · Last updated 18 May 2026
Case details
Key facts
- The claimant was dismissed with only one week's notice instead of the contractual one month.
- The respondent failed to pay the claimant's pension contributions deducted from wages.
- The respondent failed to pay the claimant in lieu of accrued but untaken holiday.
- The respondent failed to provide a written statement of reasons for dismissal after a request.
- The claimant withdrew complaints of unfair dismissal, age discrimination, sex discrimination, and redundancy payment.
Timeline
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Claim issued
The claimant issued proceedings in the North West Employment Tribunals.
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Judgment given
Employment Judge Slater issued a judgment under Rule 21 due to the respondent's failure to present a valid response.
The legal issue
The tribunal had to decide whether HYPHA Restaurants Limited was liable for breach of contract by failing to give proper notice, failing to pay pension contributions deducted from wages, failing to pay holiday pay, and failing to provide a written statement of reasons for dismissal.
The outcome
The tribunal decided in favour of the former employee on all claims that were not withdrawn.
Key reasons:
- The respondent failed to present a valid response, so the tribunal made a determination under Rule 21.
- The employee was entitled to one month's notice but received only one week, resulting in damages of £2,243.59 (including a 25% ACAS uplift).
- The respondent failed to pay employee and employer pension contributions totalling £868.01 (with ACAS uplift).
- The respondent made an unauthorised deduction by not paying holiday pay of £1,233.18 (with ACAS uplift).
- The respondent failed to provide a written statement of reasons for dismissal, resulting in an award of £1,076.92 (two weeks' pay, no ACAS uplift).
Compensation breakdown:
- Notice pay: £2,243.59
- Pension contributions: £868.01
- Holiday pay: £1,233.18
- Failure to provide reasons: £1,076.92
- Total: £5,421.70
Lessons & takeaways
- If you are dismissed with less notice than your contract entitles you to, you may be able to claim damages for breach of contract.
- Employers must pay over pension contributions deducted from wages; failing to do so is a breach of contract.
- Accrued but untaken holiday pay must be paid on termination; withholding it is an unauthorised deduction from wages.
- Employees are entitled to a written statement of reasons for dismissal if they request one; failure to provide it can result in a separate award.
- If an employer fails to respond to a tribunal claim, the tribunal can make a judgment in your favour without a hearing.
What this case shows in practice
This case illustrates what can happen when an employer ignores its contractual and statutory obligations at the end of an employment relationship. The former employee was dismissed with only one week's notice, despite being entitled to one month under her contract. She also discovered that pension contributions deducted from her wages had not been paid into her pension scheme, and she was not paid for holiday she had accrued but not taken. When she asked for a written statement of reasons for her dismissal, the employer did not provide one.
What the losing side could have done differently
HYPHA Restaurants Limited could have avoided this outcome by simply complying with its obligations. Giving the correct contractual notice, paying over pension contributions, paying holiday pay, and providing a written statement of reasons would have prevented the claim entirely. Additionally, when the claim was issued, the company failed to present a valid response, which meant the tribunal could decide the case without a hearing and without hearing the employer's side.
Why the result matters for similar claims
This case is a reminder that employment rights are enforceable even when the employer does not participate in proceedings. The tribunal applied the ACAS Code of Practice on Discipline and Grievance, increasing some awards by 25% because the employer's failures were unreasonable. The total award of £5,421.70 covered notice pay, pension contributions, holiday pay, and the failure to provide reasons. For employees in similar situations, this case shows that pursuing a claim can result in compensation for multiple breaches, even if the employer does not defend the claim.
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