Redundancy dismissal with less than two years' service: notice pay shortfall of £166
A former employee of Nubreed Hotels Ltd who was made redundant after just over a year was unable to claim unfair dismissal due to insufficient service, but won £166 for a two-day shortfall in notice pay.
2 min read · Last updated 18 May 2026
Key facts
- Claimant was employed for just over one year.
- She was given notice of termination on 25 August 2022, effective 23 September 2022.
- Contractual notice period was one calendar month, but only 29 days' notice was given.
- Claimant did not have two years' service to bring an unfair dismissal claim.
- Respondent paid one week's extra salary but failed to pay the full notice pay.
- Tribunal awarded £166 gross for the two days' shortfall in notice pay.
Timeline
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Notice of termination
Claimant served with notice of termination on grounds of redundancy, effective 23 September 2022.
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Claim presented
Claimant contacted ACAS and presented a claim to the tribunal alleging unfair dismissal and arrears of pay.
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Employment ended
Claimant's employment terminated, but she was paid only up to that date plus one week's redundancy pay.
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Strike-out judgment
Employment Judge Maidment struck out the unfair dismissal claim due to insufficient service.
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Respondent's response
Respondent served a late response acknowledging the notice pay error.
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Final hearing
Employment Judge Lancaster heard the case and awarded £166 for unauthorised deduction.
The legal issue
The tribunal had to decide whether the employee had the right to bring an unfair dismissal claim (she did not, due to insufficient service) and whether the employer had unlawfully deducted wages by failing to pay the full contractual notice period.
The outcome
The tribunal struck out the unfair dismissal claim because the employee had less than two years' continuous service, which is the minimum required to bring such a claim under section 108 of the Employment Rights Act 1996.
However, the tribunal upheld the claim for unauthorised deduction from wages. The employer had given 29 days' notice instead of the contractual one calendar month (which would have been 31 days), resulting in a shortfall of two days' pay.
- Compensation awarded: £166 gross (calculated at 2 days' pay on an annual salary of £20,280).
Lessons & takeaways
- Employees with less than two years' service cannot claim unfair dismissal, but they can still bring claims for breach of contract or unauthorised deductions from wages.
- Contractual notice periods must be strictly followed; even a two-day shortfall can lead to a successful claim for unpaid wages.
- If you are made redundant with less than two years' service, check your contract for notice entitlements and any other payments due, as these are not automatically covered by statutory redundancy rules.
A redundancy that fell short on notice
This case shows what can happen when an employer makes an employee redundant but fails to follow the contractual notice period. The employee, who had worked for Nubreed Hotels Ltd for just over a year, was given notice on 25 August 2022 terminating on 23 September 2022 — only 29 days later. Her contract required one calendar month's notice, which would have been 31 days. The employer paid her up to the termination date plus an extra week described as 'redundancy pay', but did not cover the full notice period.
Why the unfair dismissal claim failed
The employee also tried to claim unfair dismissal, but the tribunal struck this out because she had less than two years' service. Under UK law, most employees need two years' continuous employment to bring an unfair dismissal claim. This is a common trap for those who are let go early in their career — even if the dismissal seems unfair, the legal right to challenge it simply does not exist.
What the employer could have done differently
Nubreed Hotels Ltd acknowledged the notice error in their response, but only after the claim was filed. The tribunal noted that the error was clear from the termination letter itself. A simple check of the contract against the notice given would have avoided the claim entirely. Paying the correct notice period — even if the employee has no right to unfair dismissal — is a basic contractual obligation.
Why this result matters
While the £166 award is modest, the case reinforces that employment rights are not all-or-nothing. Even without the two-year qualifying period, employees can enforce their contractual rights. For employers, it is a reminder that getting the notice period right is a legal requirement, not an optional extra. For employees in a similar position, it shows that checking your contract and pursuing a claim for unpaid wages can be worthwhile, even if a broader unfair dismissal claim is not available.
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