Short-service employee wins holiday and notice pay after vehicle damage deductions
A former employee with less than 10 months' service was awarded £1,015.81 after his employer unlawfully deducted holiday pay and wages to cover vehicle damage. His unfair dismissal claim was dismissed for lack of qualifying service.
2 min read · Last updated 18 May 2026
Case details
Key facts
- Claimant employed from 11 March 2022 to 2 January 2023, just under 10 months.
- Claimant lacked two years' continuous service required for unfair dismissal claim.
- Claimant caused damage to three vehicles in December 2022.
- Respondent deducted holiday pay and wages for alleged damages without contractual authority.
- Claimant agreed in writing to a £60.47 deduction for one damage incident.
- Tribunal awarded £1,015.81 for unpaid holiday pay and wages for 2 January 2023.
Timeline
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Employment started
Claimant began employment with Maronsett Limited.
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First period of work ended
Claimant worked initially for three weeks until 3 April 2022, then took unpaid leave.
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Returned from unpaid leave
Claimant resumed working after a period of unpaid leave.
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Half-day holiday taken
Claimant took half a day holiday to collect his wife from an appointment.
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Holiday taken
Claimant took one day holiday due to maintenance work at the workplace.
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First vehicle damage incident
Claimant caused damage to a Ford car while testing emissions.
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Second vehicle damage incident
Claimant damaged a Saab car mirror; agreed to pay £60.47.
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Third vehicle damage incident
Claimant caused damage to a Porsche car while reversing.
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Notice of termination given
Claimant received formal notice of termination with two weeks' notice.
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Employment terminated
Notice period expired; claimant's employment ended.
The legal issue
Whether the employer made unlawful deductions from wages and holiday pay, and whether the employee could bring an unfair dismissal claim with less than two years' service.
The outcome
The tribunal dismissed the unfair dismissal claim because the employee had less than two years' continuous service, as required by law.
However, the tribunal upheld the claim for unlawful deduction from wages. The employer had deducted money from the employee's final pay for vehicle damage without the employee's written consent (except for one incident where £60.47 was agreed). The employer also failed to pay the employee for the bank holiday on 2 January 2023, the last day of his notice period.
The total award of £1,015.81 comprised:
- Unpaid wages for 2 January 2023 (bank holiday)
- Unpaid holiday pay wrongly retained for vehicle damage deductions
Lessons & takeaways
- Employees with less than two years' service cannot claim ordinary unfair dismissal, but may still bring claims for unlawful deductions from wages.
- Employers cannot deduct money from wages for damage or losses unless the contract allows it or the employee has given written consent.
- Holiday pay is a statutory right and cannot be withheld to offset alleged debts without clear contractual authority.
- Even short-service employees are entitled to be paid for bank holidays that fall within their notice period.
When a short-service employee still has rights
This case shows that even employees with less than two years' service — who cannot bring an ordinary unfair dismissal claim — still have important protections under employment law. The former employee, who worked for Maronsett Limited for just under 10 months, saw his unfair dismissal claim thrown out at the first hurdle. But his claim for unpaid wages and holiday pay succeeded because the employer had overstepped the mark.
The employee had caused damage to three vehicles in December 2022. He agreed in writing to a £60.47 deduction for one incident, but the employer went further and withheld holiday pay and wages for the other two incidents without any contractual right or further written consent. That was a clear breach of the law.
What the employer could have done differently
Maronsett Limited could have avoided this claim entirely by following the rules. If the employer wanted to recover the cost of damage, it needed either an express term in the contract allowing deductions or the employee's written agreement for each deduction. A general policy or a verbal agreement is not enough. Instead, the employer made unilateral deductions from holiday pay and the final wage packet, which the tribunal found unlawful.
The employer also failed to pay the employee for the bank holiday on 2 January 2023, the last day of his notice period. The tribunal noted that the business was closed on that day and the employee should have been paid.
Why this matters for similar claims
This case is a reminder that the two-year qualifying period for unfair dismissal does not leave employees without a remedy. Claims for unlawful deduction from wages, breach of contract, and unpaid holiday pay can still be brought regardless of length of service. For employers, the message is clear: deductions from wages must be legally justified, and holiday pay cannot be used as a bargaining chip.
The tribunal awarded £1,015.81, covering the unpaid bank holiday and the holiday pay that had been wrongly withheld. The employee represented himself, showing that these claims can be pursued without a lawyer.
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