Short service blocks unfair dismissal claim but holiday pay awarded
A former employee with less than two years' service had their unfair dismissal claim struck out, but secured £126.89 in contractual holiday pay.
1 min read · Last updated 18 May 2026
Key facts
- The claimant was employed by the respondent for less than two years.
- The claimant's unfair dismissal complaint was struck out due to insufficient service.
- The respondent failed to pay the claimant's outstanding holiday pay on termination.
- The claimant's complaint for unlawful deduction of wages was not well founded.
- The claimant's complaint for contractual holiday pay was well founded.
Timeline
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Employment start
The claimant began employment with the respondent. Exact date not specified.
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First judgment on unfair dismissal
Employment Judge Alliott struck out the unfair dismissal complaint due to insufficient service.
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Final hearing
Employment Judge Young heard the remaining claims at Watford Employment Tribunal.
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Judgment on remaining claims
The tribunal dismissed claims for unlawful deduction of wages, holiday pay under WTR, and contractual notice pay, but upheld the claim for contractual holiday pay.
The legal issue
The tribunal had to decide whether the employee had sufficient service to bring an unfair dismissal claim and whether the employer had made unlawful deductions from wages, including holiday pay.
The outcome
The tribunal struck out the unfair dismissal complaint due to insufficient service (less than two years). It dismissed claims for unlawful deduction of wages, statutory holiday pay, and contractual notice pay. However, it upheld the claim for contractual holiday pay accrued on termination.
- Contractual holiday pay: £126.89 awarded.
Lessons & takeaways
- Employees with less than two years' continuous service generally cannot bring an unfair dismissal claim, unless the dismissal is for an automatically unfair reason.
- Employers must pay all accrued contractual holiday pay on termination, even if the employee has short service.
- Claims for unlawful deduction of wages require clear evidence of a contractual entitlement or statutory right.
- Representing yourself at tribunal is possible but can be challenging when facing legal counsel.
Short service blocks unfair dismissal claim
This case illustrates a fundamental rule of UK employment law: employees generally need two years' continuous service to bring an unfair dismissal claim. The former employee, who had worked for Sterling Studios Ltd for less than two years, saw their unfair dismissal complaint struck out at an early stage. The tribunal had no choice but to apply section 108 of the Employment Rights Act 1996, which sets the qualifying period.
Holiday pay success despite other failures
While the unfair dismissal claim failed, the employee did succeed on one point: unpaid contractual holiday pay. The tribunal found that Sterling Studios Ltd had failed to pay £126.89 in holiday pay accrued before termination. This was a straightforward contractual entitlement, and the employer was ordered to pay the gross sum plus interest.
Other claims did not fare as well. The complaint of unlawful deduction of wages was dismissed as not well founded, as was the claim for statutory holiday pay under the Working Time Regulations and a claim for contractual notice pay. The tribunal also noted it had no jurisdiction to consider a claim for 'defamatory dismissal'.
What this means for similar cases
For employees with short service, the key takeaway is that unfair dismissal protection is limited. However, claims for unpaid wages or holiday pay can still succeed regardless of length of service. Employers should ensure they pay all contractual entitlements on termination, even for short-serving staff, as failure to do so can lead to a tribunal award. Representing yourself is possible but can be difficult when facing professional legal representation, as happened here.
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