Unfair dismissal, unpaid furlough and holiday pay: a default judgment for an employee

What this case shows in practice

This case is a stark example of what happens when an employer simply ignores tribunal proceedings. The former employee, who had worked at Hilltop Hotel (Carlisle) Ltd for six years, was dismissed by reason of redundancy in July 2021. The employer did not file a defence or attend the hearing, leaving the tribunal to decide based solely on the employee's evidence.

The tribunal accepted that the dismissal was unfair — without any evidence from the employer, there was no way to show that a fair redundancy process had been followed. The employee also succeeded in claims for unpaid holiday pay and unpaid furlough pay. He had not taken any annual leave in the calendar year up to his dismissal, and had not been paid furlough pay from 1 June 2021 onwards.

What the employer could have done differently

Hilltop Hotel could have avoided this outcome by engaging with the process. Even if the redundancy was genuine, the employer needed to show that it had followed a fair procedure — consulting with the employee, considering alternative roles, and applying objective selection criteria. By failing to respond, it lost the chance to defend its actions. It also missed the opportunity to argue that the holiday pay or furlough claims were incorrect.

Why the result matters

For employees, this case highlights that even without a loss of earnings after dismissal, a basic award for unfair dismissal can still be significant — here, £1,548 based on six years' service. It also shows that unpaid statutory entitlements like holiday pay and furlough pay can be recovered through the tribunal, even if the employer has ceased trading or is uncooperative. The total award of £4,580, while modest, covers several distinct claims that might otherwise have gone unpaid.