Less than two years' service: unfair dismissal claim struck out but employee wins over £21,000 for unpaid wages and notice
A former employee who could not bring an unfair dismissal claim due to short service was awarded over £21,000 for unauthorised wage deductions, breach of contract, and unpaid annual leave.
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 lack of qualifying service.
- The respondent made an unauthorised deduction from the claimant's wages of £11,002.50.
- The claimant was dismissed in breach of contract regarding notice, awarded £8,150.
- The respondent failed to pay accrued untaken annual leave of 6 days, awarded £2,222.73.
Timeline
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Judgment issued
Employment Judge KM Ross issued two judgments: one striking out the unfair dismissal claim, and another ordering payment for unauthorised deductions, breach of contract, and unpaid annual leave.
The legal issue
Whether the employee had sufficient service to bring an unfair dismissal claim, and whether the employer made unauthorised deductions from wages and breached contract regarding notice and annual leave.
The outcome
The tribunal struck out the unfair dismissal complaint because the employee had less than two years' service, which is required under section 108 of the Employment Rights Act 1996.
However, the tribunal found in favour of the employee on other claims:
- Unauthorised deduction from wages: £11,002.50
- Breach of contract (notice): £8,150
- Unpaid annual leave (6 days): £2,222.73
Total awarded: £21,375.23.
Lessons & takeaways
- Employees with less than two years' service cannot claim unfair dismissal, but may still have claims for unauthorised deductions, breach of contract, or unpaid holiday pay.
- Employers must ensure any deductions from wages are authorised by law or contract, or have the employee's written consent.
- Failure to pay notice pay or accrued annual leave on termination can lead to significant compensation awards.
- Even if an unfair dismissal claim is struck out, other claims can proceed and result in substantial damages.
This case shows that employees with less than two years' service are not without legal protection, even if they cannot bring an unfair dismissal claim. The former employee, who worked for Shane Finnegan t/a Harp Renewables Ltd, successfully pursued claims for unauthorised deductions, breach of contract, and unpaid annual leave.
What went wrong for the employer
The employer made an unauthorised deduction of over £11,000 from the employee's wages, failed to give proper notice when dismissing, and did not pay accrued annual leave. These are basic legal obligations that all employers must meet, regardless of an employee's length of service.
Why the result matters
The total award of £21,375.23 demonstrates that even without the unfair dismissal route, employees can recover significant sums for straightforward breaches of employment rights. The case also highlights that tribunals will strike out claims where the legal requirements are not met, but will still hear other valid complaints.
For employees in a similar position, it is worth checking whether you have claims beyond unfair dismissal, such as for unpaid wages, notice pay, or holiday pay. These do not depend on length of service and can provide a remedy even when an unfair dismissal claim is not available.
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