Bodyshop manager awarded £5,700 after company evicted and wages stopped
A bodyshop manager who was persuaded to keep working without pay after his employer was evicted from its premises has won £5,700 in unpaid wages and £10,382 for unfair dismissal and breach of contract.
2 min read · Last updated 18 May 2026
Key facts
- The claimant was employed as a Bodyshop Manager from March 2019 to February 2022.
- The respondent ceased trading in December 2021 and the claimant's employment ended.
- The claimant's wages were not paid and he was persuaded to continue working without pay.
- The respondent made an unauthorised deduction from wages of £5,700.
- The claimant was dismissed in breach of contract for outstanding expenses of £2,600.
- The claimant was unfairly dismissed and awarded a basic award of £1,632 and compensatory award of £8,750.
Timeline
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Employment started
Mr Tooze began employment as a Bodyshop Manager for Tokyo Customs Ltd.
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Business evicted and employment ended
The respondent's landlord evicted the business, and the claimant's employment came to an end.
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Claim 2 presented
Mr Tooze presented claim No. 1400811/2022 against Tokyo Customs Ltd for unfair dismissal, unpaid redundancy, breach of contract, unpaid holiday pay, and unlawful deductions.
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Respondent entered response
The respondent entered a response covering both Claim 2 and Claim 3, but the response form only showed Claim 3's number.
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Initial judgment issued
A default judgment was issued in favour of Mr Tooze due to the error that the response was not understood to cover Claim 2.
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Respondent indicated no attendance
Mr Wall emailed that the respondent had ceased trading and would not attend the reconsideration hearing.
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Reconsideration hearing
Employment Judge Livesey held a reconsideration hearing and confirmed the original judgment.
The legal issue
The tribunal had to decide whether the employer had unlawfully deducted wages, breached the employment contract by dismissing without notice, and unfairly dismissed the employee when the business ceased trading.
The outcome
The tribunal ruled in favour of the claimant on all claims.
- The respondent made an unauthorised deduction from wages of £5,700.
- The claimant was dismissed in breach of contract (outstanding expenses of £2,600).
- The claimant was unfairly dismissed.
Compensation:
- Basic award: £1,632
- Compensatory award: £8,750
- Total: £10,382 (plus the £5,700 wage deduction and £2,600 breach of contract damages)
Lessons & takeaways
- If your employer stops paying you but asks you to keep working, you may have a claim for unauthorised deductions from wages.
- A dismissal without notice when a business ceases trading can still be a breach of contract and unfair dismissal.
- Even if your employer has ceased trading, you can still pursue a claim and may obtain a judgment that can be enforced against the company's assets.
- Keep a clear record of all unpaid wages and expenses – the tribunal will rely on your schedule of loss.
When the business stops, but the bills don't
This case shows what can happen when a company runs into financial trouble and stops paying its staff. The bodyshop manager had worked for Tokyo Customs Ltd for nearly three years when the business was evicted from its premises in December 2021. Before that, his wages had stopped, but he was persuaded to carry on working in the hope that new investment would arrive.
When the landlord evicted the company, the manager's employment ended without notice and without any payment for the work he had already done. He was also left out of pocket for business expenses he had incurred.
What the tribunal decided
The tribunal found that the company had made an unauthorised deduction from the manager's wages of £5,700 – money he had earned but never received. It also ruled that his dismissal was in breach of contract, because the company failed to pay him £2,600 in outstanding expenses. And because the dismissal was not handled fairly – there was no consultation or notice – it was also unfair.
The total compensation came to just over £16,000, made up of the unpaid wages, the expenses, and the basic and compensatory awards for unfair dismissal.
What the employer could have done differently
Tokyo Customs Ltd could have avoided this outcome by paying its employee what he was owed when the business closed. If it was genuinely unable to pay, it should have entered formal insolvency proceedings rather than simply ceasing to trade. The directors' decision to persuade the manager to keep working without pay – while knowing the business was in trouble – was a key factor in the tribunal's decision.
Why this matters
This case is a reminder that employees are protected even when their employer goes under. The law on unauthorised deductions and unfair dismissal applies regardless of whether the business is still trading. If you are asked to work without pay, or if your employment ends abruptly when a company closes, you may have a claim – and the tribunal can award compensation even if the employer does not defend the case.
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