Unfair dismissal and unpaid sick pay: a case of procedural failures
A former employee with six years' service was unfairly dismissed by WFM Food London Ltd and awarded £27,863 after the company failed to follow the ACAS code and made unauthorised deductions from wages.
1 min read · Last updated 18 May 2026
Case details
Key facts
- The claimant was employed by the respondent from 9 November 2015 to 9 November 2021.
- The claimant was dismissed on 9 November 2021.
- The respondent failed to follow the ACAS Code of Practice on disciplinary and grievance procedures.
- The claimant was not paid full statutory sick pay for an 8-week sickness absence.
- The claimant was not paid for accrued but untaken annual leave on termination.
- The claimant's claims for unpaid wages and wrongful dismissal were dismissed.
Timeline
-
Employment started
The claimant began working for the respondent.
-
Dismissal
The claimant was dismissed with immediate effect.
-
Loss of earnings begins
The claimant started to suffer loss of earnings from the day after dismissal.
-
Loss of earnings ends
The period of past loss of earnings ended on this date.
-
Hearing day 1
The tribunal heard the case on liability and remedy.
-
Hearing day 2
The tribunal concluded the hearing.
-
Judgment issued
The written judgment was sent to the parties.
The legal issue
The tribunal had to decide whether the claimant was unfairly dismissed, whether she suffered unauthorised deductions from wages (statutory sick pay and annual leave), and whether she was entitled to compensation for unpaid wages and wrongful dismissal.
The outcome
The tribunal upheld the claimant's complaints of unfair dismissal and unauthorised deductions from wages, but dismissed her claims for unpaid wages and wrongful dismissal.
Key reasons:
- The respondent failed to follow the ACAS Code of Practice, leading to a 20% uplift on the compensatory award.
- The claimant was not paid full statutory sick pay for an 8-week absence and was not paid for accrued but untaken annual leave on termination.
Compensation breakdown:
- Basic award: £4,896
- Compensatory award (after ACAS uplift): £21,463.63
- Unauthorised deductions: £1,503.63 (SSP £192.69, annual leave £1,310.94)
- Total: £27,863.26
Lessons & takeaways
- Employers must follow the ACAS Code of Practice on disciplinary and grievance procedures; failure to do so can increase compensation by up to 25%.
- Employees are entitled to full statutory sick pay for qualifying periods; deductions without proper justification can lead to successful claims.
- Accrued but untaken annual leave must be paid on termination, regardless of the reason for dismissal.
- Length of service (here 6 years) strengthens a claim for unfair dismissal, especially if procedures are ignored.
What this case shows
This case highlights how procedural failures can turn a dismissal into an expensive mistake for employers. The former employee, who had six years' service, was dismissed without the respondent following the ACAS Code of Practice. The tribunal found this made the dismissal unfair, and applied a 20% uplift to the compensatory award as a result.
Beyond the dismissal itself, the employer also made unauthorised deductions from wages. The claimant was underpaid statutory sick pay during an eight-week absence and was not paid for accrued annual leave when she left. These are common issues that can be easily avoided with proper payroll processes.
What the employer could have done differently
WFM Food London Ltd could have avoided liability by following a fair disciplinary process, including giving the employee a chance to respond to concerns and offering a right of appeal. On the wage side, ensuring correct SSP payments and paying all accrued holiday on termination would have prevented the unauthorised deductions claims.
Why this matters
For employees, this case shows that even a straightforward dismissal can give rise to multiple claims if the employer cuts corners. The total award of over £27,000 reflects not just the loss of earnings but also the added penalties for procedural failures. For employers, it is a reminder that ignoring the ACAS code and basic wage obligations can be costly, especially when the employee has several years' service.
Similar cases
Dismissed without a meeting or appeal: a conduct case with big reductions
A former employee of Fairview Grocers Limited was unfairly dismissed without any meeting or right of appeal, but his own conduct led to a 60% cut in compensation. He was awarded £3,752.89 in total.
Unfair dismissal and unpaid notice: a procedural failure that cost £8,000
A former employee was unfairly dismissed and denied proper notice pay and annual leave. The tribunal awarded £8,000 after finding the employer failed to follow a fair process.
Barber's assistant dismissed while signed off sick: no procedure, no fairness
A barber's assistant who was dismissed by text message while on sick leave has won £16,840 in compensation for unfair dismissal, unpaid wages, holiday pay and sick pay.
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.