Former employee wins default judgment over unauthorised wage deductions and unfair dismissal
A former employee has won a default judgment against Boilertech (NW) Limited after the company failed to respond to claims of unauthorised wage deductions and unfair dismissal. The tribunal awarded £2,758.46 in total.
1 min read · Last updated 18 May 2026
Key facts
- The respondent failed to present a valid response to the claim on time.
- The respondent made an unauthorised deduction from the claimant's wages for 2.5 months.
- The claimant was employed for 2 years and was under 22 years old.
- The claimant was out of work for 1.5 months after dismissal.
- The claimant's gross monthly salary was £652.00.
Timeline
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Unauthorised deduction begins
The respondent started making unauthorised deductions from the claimant's wages.
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Unauthorised deduction ends
The unauthorised deductions ceased after 2.5 months.
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Judgment issued
Employment Judge Holmes issued a default judgment in favour of the claimant.
The legal issue
The tribunal had to decide whether the employer made unauthorised deductions from the employee's wages and whether the employee was unfairly dismissed, given that the employer did not defend the claims.
The outcome
The tribunal ruled in favour of the former employee by default, as Boilertech (NW) Limited did not present a valid response in time.
Key reasons:
- The employer made unauthorised deductions from wages for 2.5 months.
- The employee was unfairly dismissed.
Compensation breakdown:
- Unauthorised deductions: £1,630.00
- Basic award for unfair dismissal: £150.46
- Compensatory award for loss of earnings: £978.00
- Total: £2,758.46
Lessons & takeaways
- If you receive an employment tribunal claim, you must respond on time or risk a default judgment against you.
- Unauthorised deductions from wages are unlawful, and employees can claim back the full amount deducted.
- Even short-serving employees under 22 can claim unfair dismissal and receive a basic award based on their age and length of service.
- Keep records of your wages and any deductions to support a claim for unauthorised deductions.
What this case shows
This case demonstrates what happens when an employer ignores a tribunal claim. Boilertech (NW) Limited failed to submit a valid response, so the tribunal made a default judgment in favour of the former employee. The employee had been subjected to unauthorised wage deductions for 2.5 months and was then dismissed. Because the employer did not defend the claim, the tribunal accepted the employee's version of events.
What the employer could have done differently
The employer could have avoided this outcome simply by responding to the claim on time. Even if they had a genuine dispute, failing to engage with the tribunal process meant they lost the chance to argue their case. They also could have avoided the unauthorised deductions by ensuring any wage reductions were agreed in writing or properly authorised.
Why this matters
This case is a reminder that employment tribunal claims cannot be ignored. Default judgments can be costly, as the tribunal will award the full amount claimed without scrutiny of the employer's position. For employees, it shows that even relatively small claims for unpaid wages and unfair dismissal can succeed if the employer fails to defend. The total award of £2,758.46 included the full amount of the unauthorised deductions plus compensation for lost earnings after dismissal.
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