Cleaner awarded £224 holiday pay after TUPE transfer but constructive dismissal claim fails
A cleaner and supervisor who resigned after a TUPE transfer was awarded £224 for unpaid holiday pay, but her claims for constructive dismissal and race discrimination were dismissed.
1 min read · Last updated 18 May 2026
Case details
Key facts
- The claimant transferred to the first respondent under TUPE on 20 December 2021.
- The claimant was not dismissed; she resigned by ceasing communication after 16 February 2022.
- The first respondent did not fundamentally breach the claimant's contract, so there was no constructive dismissal.
- The claimant was owed 5 days' holiday pay from 2021, awarded at £224 gross.
- The claim for holiday pay from 2018 was out of time.
- The race discrimination claim was not well-founded and was dismissed.
Timeline
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Started employment with BBCS
Claimant signed new employee form with BBCS, accepting terms and conditions.
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TUPE transfer to DBS
Claimant's employment transferred to D Brice and Company Ltd (DBS).
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Initial meeting with DBS
Claimant attended a group meeting and received a starter pack and contract.
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Claimant learned of alleged resignation
During a phone call, claimant was told DBS believed she had resigned.
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BBCS confirmed claimant still employed
BBCS emailed DBS confirming claimant had not resigned.
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Telephone meeting with DBS
Claimant had an hour-long call with Mrs Albert to discuss concerns.
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DBS sent clarification letter
DBS sent a letter addressing claimant's concerns about contract terms.
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Claimant commenced ACAS proceedings
Claimant started ACAS early conciliation.
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ET1 issued
Claimant presented her claim to the Employment Tribunal.
The legal issue
The tribunal had to decide whether the claimant was constructively dismissed, whether she was owed unpaid holiday pay, and whether she was discriminated against on grounds of race.
The outcome
The tribunal dismissed the claims for constructive unfair dismissal, wrongful dismissal, and race discrimination. It held that the claimant resigned by ceasing communication, and the employer's conduct did not amount to a fundamental breach of contract.
However, the claimant was awarded £224 gross for 5 days' unpaid holiday pay accrued in 2021. Claims for holiday pay from 2018 were dismissed as out of time.
Compensation breakdown:
- Unpaid holiday pay: £224 gross (5 days)
Lessons & takeaways
- If you believe you have been constructively dismissed, you must show that your employer committed a fundamental breach of contract that caused you to resign – simply stopping communication may be seen as resignation.
- Claims for unpaid holiday pay must be brought within three months of the date the holiday should have been paid, or within a reasonable period after the end of the holiday year.
- TUPE transfers do not automatically entitle you to different contract terms; if you accept new terms by continuing to work, you may be bound by them.
- Race discrimination claims must be supported by evidence that the treatment was because of race – a feeling of being treated differently is not enough.
A dispute over contract terms after a TUPE transfer
This case shows what can happen when an employee disagrees with new terms offered after a TUPE transfer. The claimant, a cleaner and supervisor with over three years' service, transferred to D Brice and Company Ltd (DBS) in December 2021. She was unhappy with the new contract and raised concerns, but after a series of meetings and a clarification letter from DBS in February 2022, she stopped all communication. The tribunal found that by ceasing to engage, she had resigned – and that DBS had not fundamentally breached her contract, so there was no constructive dismissal.
What the employer could have done differently
DBS could have handled the transition more carefully by ensuring the claimant understood the terms and by addressing her concerns more promptly. However, the tribunal noted that DBS did engage with her, held meetings, and sent a letter clarifying the position. The real issue was the claimant's failure to formally resign or raise a grievance – instead, she simply stopped communicating, which the tribunal treated as resignation by conduct.
Why this matters for similar claims
For employees, this case is a reminder that constructive dismissal claims require a clear, fundamental breach by the employer – and that walking away without formal notice can be interpreted as resignation. For employers, it shows that a reasonable process of communication and clarification can defend against constructive dismissal claims. The modest award of £224 for holiday pay highlights the importance of keeping accurate holiday records and paying accrued leave on transfer.
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