Employer cut salary without consent and withheld holiday pay: former employee wins £4,416

When an employer cuts pay without asking

This case shows what can happen when an employer decides to reduce an employee's salary without getting their agreement. The former employee, who had worked for NASA Food Services Limited for just over a year, saw his pay drop by 40% in April 2020 and then by 80% in May 2020. He had not agreed to any reduction. The tribunal found that these deductions were unlawful because the employer had no legal right to make them.

Holiday pay that was owed but not paid

The employee had taken only 10 days of holiday during his 15-month employment, leaving 33 days of accrued holiday when he resigned. Under UK law, workers are entitled to be paid for any holiday they have built up but not taken when they leave a job. The employer failed to make that payment, and the tribunal ordered it to pay £2,577.96 for the outstanding holiday.

What the employer could have done differently

The employer did not attend the hearing or provide any evidence. The tribunal accepted the employee's account because the employer chose not to challenge it. If the employer had engaged with the process, it might have been able to argue that the salary reductions were agreed or justified, or that the holiday entitlement was different. By staying silent, it left the tribunal with no choice but to accept the employee's case.

Why this matters

This case is a reminder that employment rights do not disappear during tough economic times. Employers who want to change pay or terms must get the employee's consent. And when an employee leaves, any accrued holiday pay must be included in the final payment. For employees, keeping a record of your holiday and any changes to your pay can be crucial if you need to bring a claim.