Unpaid wages and short notice: two employees win claims against Gold Mount Markets
Two former employees of Gold Mount Markets have won claims for unpaid wages, notice pay, and holiday pay after the company stopped paying them for over three months during the pandemic.
1 min read · Last updated 18 May 2026
Case details
Key facts
- The first claimant, Mr Arora, did not have the required 2 years' continuous service for a redundancy or unfair dismissal claim.
- The respondent failed to pay the first claimant's wages from 1 June 2020 to 10 September 2020.
- The respondent provided only 1 week's notice instead of the contractual 4 weeks for the first claimant.
- The second claimant, Mr Sadiq, had 2 years' service and was dismissed by reason of redundancy.
- The respondent failed to pay the second claimant's wages from 1 June 2020 to 10 September 2020.
- The respondent provided only 1 week's notice instead of the contractual 8 weeks for the second claimant.
Timeline
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Unpaid wages period begins
The respondent stopped paying wages to both claimants from this date.
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Unpaid wages period ends
The respondent resumed paying wages or the claimants' employment ended.
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Hearing
The employment tribunal heard the claims at London South via CVP.
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Judgment corrected
The oral judgment given on 2 February 2023 was corrected.
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Written judgment issued
The written record of the decision was sent to the parties.
The legal issue
The tribunal had to decide whether the claimants were entitled to redundancy pay, unfair dismissal compensation, notice pay, unlawful deduction of wages, and holiday pay, and whether the first claimant had sufficient continuous service to bring certain claims.
The outcome
The tribunal partially upheld the claims of both former employees.
- The first claimant, who had less than two years' service, could not claim redundancy or unfair dismissal but succeeded in claims for unpaid wages (£3,875.72), notice pay (£653.11), holiday pay (£1,261), and bank charges (£341.41).
- The second claimant, with over two years' service, succeeded in claims for redundancy pay (£600), unfair dismissal (basic and compensatory awards reduced to nil due to business cessation), unpaid wages (£3,780), notice pay (£1,764), holiday pay (£1,135.29), and bank charges (£180).
Lessons & takeaways
- Employees with less than two years' continuous service generally cannot bring unfair dismissal or redundancy claims, but can still claim unpaid wages, notice pay, and holiday pay.
- Employers must provide the contractual notice period or pay in lieu; failing to do so can result in a successful claim for notice pay.
- Stopping wages without agreement or lawful reason is an unlawful deduction; employees can claim the unpaid amounts plus any resulting financial losses like bank charges.
- Accrued statutory holiday pay must be paid on termination, regardless of the reason for dismissal.
This case shows what can happen when an employer stops paying wages and fails to follow contractual notice periods. Two former employees of Gold Mount Markets Limited found themselves without pay for over three months during the pandemic, and the company also gave them only one week's notice instead of the contractual four or eight weeks.
What the tribunal decided
The tribunal ruled that Gold Mount Markets unlawfully deducted wages from both employees between June and September 2020. The company also failed to pay the correct notice pay and did not compensate for accrued holiday leave. The first employee, who had less than two years' service, could not pursue redundancy or unfair dismissal claims, but succeeded on the other points. The second employee, with over two years' service, won a redundancy payment and an unfair dismissal finding, though compensation was reduced to nil because the business had effectively ceased trading.
What the employer could have done differently
Gold Mount Markets could have avoided these claims by continuing to pay wages during the period in question, or by following a proper redundancy process that included consultation and notice pay. Providing only one week's notice when the contract required four or eight weeks was a clear breach. The company also failed to attend the hearing, which meant the tribunal decided based on the employees' evidence.
Why this matters
This case is a reminder that even employees with short service have legal protections around pay and notice. It also highlights that employers cannot simply stop paying wages without agreement or a lawful reason. For employees, it shows the importance of keeping records of contractual terms, payslips, and any correspondence about unpaid wages or notice.
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