Short service and no notice pay loss: breach of contract claim fails
A former employee who worked for David Wood Baking Limited for less than two years could not claim unfair dismissal, and his breach of contract claim failed because he was paid in full for his notice period.
1 min read · Last updated 18 May 2026
Case details
- #breach-of-contract
- #unfair-dismissal
- #unlawful-deduction-from-wages
- #working-time-regulations
- #insufficient-continuous-employment
- #no-loss-notice-pay
Key facts
- The claimant was employed by the respondent from 5 November 2021 to 4 February 2022.
- The claimant was not continuously employed for two years, so he could not claim unfair dismissal.
- The respondent terminated the claimant's employment without notice, breaching the contract.
- The respondent paid the claimant in full for his contractual notice period, so no damages were awarded.
- The claimant's claim for unlawful deduction from wages and holiday pay was dismissed.
Timeline
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Start of period without contract
The claimant's relations with the respondent were not governed by a contract of employment from this date until 5 November 2021.
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Start of last employment period
The claimant's last period of employment with the respondent began.
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End of employment
The claimant's employment ended.
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Notice period expiry
The contractual notice period would have expired; the respondent paid the claimant in full for this period.
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Tribunal hearing
The employment tribunal heard the case and issued judgment dismissing both claims.
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Judgment sent to parties
The written judgment was sent to the parties.
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Reconsideration application
The claimant applied for reconsideration of the judgment.
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Reconsideration refused
Employment Judge Horne refused the reconsideration application.
The legal issue
The tribunal had to decide whether the employee was unfairly dismissed and whether the employer breached his contract by terminating without notice, and if so, what damages were due.
The outcome
The tribunal dismissed both claims.
- The employee had not been continuously employed for two years, so he could not bring an unfair dismissal claim.
- The employer did breach the contract by ending employment without notice, but because they paid the employee in full for his notice period, there was no financial loss and no damages were awarded.
- Claims for unlawful deduction from wages and holiday pay were also dismissed.
Lessons & takeaways
- Employees with less than two years' continuous service generally cannot claim unfair dismissal in Great Britain.
- If an employer fails to give notice but pays in lieu, there may be no financial loss to claim for breach of contract.
- Keep clear records of employment start dates and any gaps in service, as these affect your statutory rights.
- If you are representing yourself, ensure you understand the legal requirements for each claim you bring.
This case shows how strict the two-year qualifying period for unfair dismissal can be. The employee worked for David Wood Baking Limited for only three months, from November 2021 to February 2022. Because his continuous service fell short of two years, the tribunal had no choice but to dismiss his unfair dismissal claim at the outset.
The breach of contract claim
The employee also argued that the bakery had breached his contract by dismissing him without notice. The tribunal agreed that this was a breach. However, the employer had already paid the employee in full for what would have been his notice period. Since the employee suffered no financial loss, the tribunal awarded no damages. This is a reminder that a breach of contract alone does not guarantee compensation — you must show actual loss.
What went wrong for the employee?
The employee represented himself, which can be challenging in employment tribunals. He also had a gap in his employment history with the same employer, which meant his continuous service was broken. Understanding the legal definitions of 'continuous employment' and 'worker' status is crucial before bringing a claim. The tribunal also dismissed claims for holiday pay and unlawful deductions, as the employee was not a worker during the relevant period.
Why this matters
This case is a cautionary tale for employees with short service. It highlights the importance of checking your continuous employment dates and the specific legal requirements for each type of claim. For employers, it confirms that paying notice pay in full can neutralise a breach of contract claim, even if the dismissal itself was procedurally flawed.
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