Unfair dismissal claim struck out due to short service, but wage deduction claim succeeds
A former employee who worked for less than two years at Morecambe Bay Wines Ltd had their unfair dismissal claim struck out, but won £1,339.64 in an unlawful deduction from wages claim.
1 min read · Last updated 18 May 2026
Case details
Key facts
- The claimant was employed by the respondent for less than two years.
- The claimant brought a complaint of unfair dismissal.
- The claimant also brought a complaint of unlawful deduction from wages.
- The unfair dismissal complaint was struck out due to lack of qualifying service.
- The respondent made an unlawful deduction from the claimant's wages for the period 1 February to 25 February 2022.
- The claimant was awarded £1,339.64 gross for the unlawful deduction.
Timeline
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Start of wage deduction period
The period for which the claimant was not paid wages began.
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End of wage deduction period
The period for which the claimant was not paid wages ended.
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First judgment (strike out)
Employment Judge Mark Butler struck out the unfair dismissal complaint due to insufficient service.
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Substantive hearing
The hearing for the unlawful deduction claim took place via video at Manchester Employment Tribunal.
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Final judgment
Employment Judge Jane Callan found the respondent made an unlawful deduction and ordered payment of £1,339.64.
The legal issue
The tribunal had to decide whether the employee had enough service to bring an unfair dismissal claim (they did not) and whether the employer unlawfully deducted wages (they did).
The outcome
The tribunal struck out the unfair dismissal claim because the employee had less than two years' continuous service, as required by section 108 of the Employment Rights Act 1996.
The tribunal found that Morecambe Bay Wines Ltd made an unlawful deduction from wages for the period 1 February to 25 February 2022. The employee was awarded £1,339.64 gross, calculated as:
- Wages due for the period: £2,146.55
- Minus pay for annual leave taken in excess of accrued entitlement: £806.91
Lessons & takeaways
- Employees with less than two years' service cannot bring a claim for unfair dismissal, unless the dismissal is for an automatically unfair reason such as whistleblowing or discrimination.
- Employers must ensure they have a lawful basis for deducting wages; failure to pay for work done can lead to a successful unlawful deduction claim.
- Even if an unfair dismissal claim fails, other claims such as unlawful deduction from wages may still succeed if the facts support them.
- Keeping accurate records of wages and leave is essential to avoid disputes over deductions.
A case of two claims, one outcome
This case illustrates the strict jurisdictional rules that apply to unfair dismissal claims. The former employee, who had worked for Morecambe Bay Wines Ltd for less than two years, brought a complaint of unfair dismissal. However, the Employment Rights Act 1996 requires a minimum of two years' continuous service to bring such a claim (unless the dismissal is for an automatically unfair reason, which was not argued here). The tribunal therefore struck out the unfair dismissal complaint at an early stage.
The wage claim that succeeded
Alongside the unfair dismissal claim, the employee also brought a claim for unlawful deduction from wages. The tribunal found that the employer had failed to pay wages for the period 1 February to 25 February 2022. The employer argued that the employee had taken excess annual leave, but the tribunal calculated that the amount owed after accounting for the excess leave was £1,339.64. This sum was ordered to be paid.
What this means for similar claims
This case is a reminder that employees with less than two years' service have limited protection against unfair dismissal. However, they can still bring claims for other issues, such as unlawful deductions from wages, discrimination, or whistleblowing. Employers should ensure they have proper processes for deducting wages and should keep clear records of leave and payments to avoid disputes.
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