Unauthorised deduction and unfair dismissal: ACAS breach adds 25% to compensation
A former employee won £10,748.88 after their employer made an unauthorised deduction from wages and unfairly dismissed them. The tribunal added a 25% uplift because the employer breached the ACAS Code of Practice.
1 min read · Last updated 18 May 2026
Case details
- #unauthorised-deduction
- #acas-code-uplift
- #remedy-hearing-pending
Key facts
- The respondent made an unauthorised deduction from the claimant's wages.
- The claimant was unfairly dismissed.
- The respondent did not attend the hearing.
- The ACAS Code of Practice was breached, leading to a 25% uplift on compensation.
- A remedy hearing is to be fixed to assess damages for unfair dismissal.
Timeline
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Start of prescribed period
The prescribed period for recoupment begins.
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End of 12-week period
End of the 12-week period used to calculate previous net average pay.
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Start of difference period
Start of the period comparing previous and new net average pay.
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Initial judgment and directions
Employment Judge Dawson issued a judgment finding unauthorised deduction and unfair dismissal, with directions for a remedy hearing.
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Remedy hearing
Employment Judge G. King held a remedy hearing and awarded £10,748.88, including a 25% ACAS uplift.
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Judgment sent to parties
The written judgment was sent to the parties.
The legal issue
The tribunal had to decide whether the employer made an unauthorised deduction from wages and whether the dismissal was unfair, and then calculate the compensation due.
The outcome
The tribunal ruled in favour of the former employee on both claims: unauthorised deduction and unfair dismissal. The employer did not attend the hearing.
Compensation was calculated in two parts:
- Prescribed element (loss of earnings during the prescribed period): £7,128.69 (including 25% ACAS uplift)
- Non-prescribed element (future losses, pension, benefits): £3,620.19 (including 25% ACAS uplift)
- Total award: £10,748.88
Lessons & takeaways
- Employers must follow the ACAS Code of Practice on disciplinary and grievance procedures; failing to do so can lead to a 25% uplift on compensation.
- If you believe your employer has made an unauthorised deduction from your wages, you can bring a claim to an employment tribunal.
- Even if the employer does not attend the hearing, the tribunal can still proceed and make a judgment based on the evidence provided.
What this case shows in practice
This case illustrates the importance of employers following proper procedures when dealing with wages and dismissals. The former employee brought claims for unauthorised deduction from wages and unfair dismissal. The employer, Park & Birch Ltd, did not attend the hearing, which meant the tribunal decided based on the employee's evidence alone.
The tribunal found that the employer had made an unauthorised deduction and that the dismissal was unfair. Because the employer had also breached the ACAS Code of Practice on disciplinary and grievance procedures, the tribunal applied a 25% uplift to the compensation.
What the losing side could have done differently
Park & Birch Ltd could have avoided this outcome by attending the hearing and presenting their side of the story. They could also have followed the ACAS Code of Practice, which sets out fair procedures for discipline and grievance. By failing to do so, they not only lost the case but also faced a significantly higher compensation bill.
Why the result matters for similar claims
This case is a reminder that employment tribunals take unauthorised deductions and unfair dismissals seriously, especially when employers ignore the ACAS Code. For employees, it shows that even if your employer does not engage with the process, you can still get a fair hearing and compensation. The 25% uplift is a powerful tool to encourage employers to follow proper procedures.
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