Unfairly dismissed and left unpaid: a case of multiple breaches by an employer
Two former employees were unfairly dismissed and awarded over £42,000 for unpaid notice, unauthorised deductions, holiday pay, and pension contributions, plus a 25% uplift for the employer's failure to comply with ACAS rules.
1 min read · Last updated 18 May 2026
Case details
- #unauthorised-deductions
- #holiday-pay
- #pension-contributions
- #section-207a-uplift
- #notice-pay
Key facts
- The claimants were employed from 14 June 2019 until 10 June 2022.
- The respondent unfairly dismissed both claimants with effect from 10 June 2022.
- The claimants worked their four-week notice period but were not paid.
- The respondent made unauthorised deductions from wages from 1 January 2022 to 12 May 2022.
- The respondent failed to pay accrued holiday pay on termination.
- The respondent breached contract by failing to pay pension contributions.
Timeline
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Employment started
Both claimants commenced employment with the first respondent.
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Unauthorised deductions began
The respondent started making unauthorised deductions from the claimants' wages.
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Unauthorised deductions ended
The period of unauthorised deductions ended.
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Dismissal and notice worked
Both claimants were unfairly dismissed and worked their four-week notice period without pay.
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Judgment issued
Employment Judge Evans issued the judgment awarding compensation for unfair dismissal, notice pay, unauthorised deductions, holiday pay, and pension contributions.
The legal issue
The tribunal had to decide whether the claimants were unfairly dismissed, whether they were entitled to notice pay, whether unauthorised deductions were made, whether holiday pay was due, and whether pension contributions were owed.
The outcome
The tribunal ruled in favour of both claimants on all claims. The employer was ordered to pay a total of £42,070.55, comprising:
- Basic award: £1,950 total (£1,142 for the first claimant, £808 for the second)
- Compensatory award: £19,557.50 total (£9,719 and £9,838.50)
- Notice pay (with 25% uplift): £5,290 total (£3,270 and £2,020)
- Unauthorised deductions (with 25% uplift): £8,982.50 total (£6,013.75 and £2,968.75)
- Holiday pay (with 25% uplift): £6,612.50 total (£4,087.50 and £2,525)
- Pension contributions (with 25% uplift): £9,515.55 total (£6,278.40 and £3,237.15)
The 25% uplift was applied under section 207A of the Trade Union and Labour Relations (Consolidation) Act 1992 because the employer failed to follow the ACAS code of practice on disciplinary and grievance procedures.
Lessons & takeaways
- If you are dismissed and work your notice period, you are entitled to be paid for that time – even if the employer claims otherwise.
- Keep records of your wages and deductions; unauthorised deductions can be claimed up to three months after the last deduction.
- Employers must pay accrued holiday pay on termination; failing to do so can lead to a tribunal award with an uplift.
- If an employer deducts pension contributions but fails to pay them into the scheme, you can claim damages for breach of contract.
- An employer's failure to engage with the tribunal process (e.g., not attending) can result in a 25% uplift on certain awards for non-compliance with ACAS codes.
When an employer fails on every front
This case shows what can happen when an employer not only dismisses employees unfairly but also fails to meet basic legal obligations around pay, holiday, and pensions. The two former employees had worked for the company for three years and were dismissed with effect from 10 June 2022. They worked their four-week notice period but were never paid for it. Worse, the employer had been making unauthorised deductions from their wages since January 2022, and on termination failed to pay accrued holiday pay or the pension contributions it had deducted from their salaries.
What the employer could have done differently
The employer did not attend the hearing or send a representative, which meant the tribunal heard only the claimants' evidence. A 25% uplift was applied to several awards because the employer did not follow the ACAS code of practice on disciplinary and grievance procedures. Had the employer engaged with the process, it might have reduced the compensation or avoided the uplift. Paying wages correctly, honouring notice periods, and making pension contributions would have prevented the claims entirely.
Why this result matters
This case is a reminder that employment rights are not optional. Employees who are unfairly dismissed can claim compensation for lost earnings, notice pay, and other contractual benefits. The 25% uplift for non-compliance with ACAS codes is a powerful tool to encourage employers to follow proper procedures. For employees, it shows the importance of keeping detailed records of pay, deductions, and any communications with the employer. The total award of over £42,000 reflects the cumulative impact of multiple breaches, and the tribunal's decision sends a clear message that such conduct will not be tolerated.
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