Four former employees win unpaid wages and constructive dismissal claims against engineering firm
TAL Precision Engineering Ltd failed to pay wages for three months, leading to successful claims for unpaid wages, redundancy pay, and constructive unfair dismissal. The tribunal also applied a 25% ACAS uplift for failing to follow statutory procedures.
1 min read · Last updated 18 May 2026
Case details
- #unpaid-wages
- #constructive-dismissal
- #redundancy
- #acas-uplift
- #multiple-claimants
Key facts
- The claimants were employed by TAL Precision Engineering Ltd.
- The respondent failed to pay wages for February, March, and April 2022.
- Mr Pinnington claimed constructive unfair dismissal and was awarded basic and compensatory awards.
- Mr Hodges received redundancy pay and net pay.
- Mr Savage and Mr Elkington received unpaid wages, pension contributions, and compensation for unfair dismissal.
- An ACAS uplift of 25% was applied to Mr Pinnington's unpaid wages.
Timeline
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Unpaid wages start
The respondent failed to pay wages for February 2022.
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Unpaid wages continue
Wages for March 2022 were not paid.
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Unpaid wages for April
Wages for April 2022 were not paid for some claimants.
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Mr Savage secures new employment
Mr Savage started a new job on 20 June 2022.
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Hearing and judgment
The employment tribunal heard the case and issued a judgment by consent.
The legal issue
The tribunal had to determine the amounts owed to four former employees for unpaid wages, redundancy, and constructive unfair dismissal, and whether an ACAS uplift should apply for failure to follow statutory dispute resolution procedures.
The outcome
The tribunal issued a judgment by consent, awarding the following:
- Mr Pinnington: £7,769.98 for unpaid wages and leave (with a 25% ACAS uplift of £1,603.44 on two months' wages) and £13,016.64 for constructive unfair dismissal (basic award £10,608, compensatory award £1,908.64, loss of statutory rights £500).
- Mr Hodges: £3,393 redundancy pay and £1,775.72 net pay.
- Mr Savage: £4,593.83 for unpaid wages and pension contributions, plus £7,605 basic award, £6,443.80 compensatory award, £5,070 notice pay, and £500 loss of statutory rights.
- Mr Elkington: £5,449.67 for unpaid wages and pension contributions, plus £4,673.07 basic award, £11,023.44 compensatory award, £3,115.38 notice pay, and £500 loss of statutory rights.
Lessons & takeaways
- Employers must pay wages on time; failing to do so for three months is a clear breach of contract and can lead to constructive dismissal claims.
- An ACAS uplift of up to 25% can be applied if an employer fails to follow statutory dispute resolution procedures, such as not responding to a grievance.
- Employees who resign due to non-payment of wages may claim constructive unfair dismissal, and the basic award is based on age, length of service, and weekly pay.
- Claimants who secure new employment quickly may still recover compensation for the period of unemployment and loss of statutory rights.
- Unpaid pension contributions (both employee and employer) are recoverable as part of a claim for unpaid wages.
When wages stop, trust breaks
This case shows what can happen when an employer stops paying wages without explanation. Four former employees of TAL Precision Engineering Ltd were left without pay for February, March, and April 2022. For some, the non-payment was the final straw that led them to resign and claim constructive unfair dismissal. For others, the claim was limited to recovering the money they were owed.
The tribunal's judgment, issued by consent, awarded substantial sums to each claimant. Mr Pinnington, who brought a constructive dismissal claim, received over £20,000 including an ACAS uplift of 25% on his unpaid wages because the company had failed to follow statutory dispute resolution procedures. Mr Hodges was awarded redundancy pay and net pay. Mr Savage and Mr Elkington recovered unpaid wages, pension contributions, and compensation for unfair dismissal, including notice pay and loss of statutory rights.
What the employer could have done differently
The key failure here was simple: paying wages. Had TAL Precision Engineering Ltd maintained payments, the claims for unpaid wages would not have arisen. Additionally, engaging with employees' grievances and following ACAS procedures could have avoided the 25% uplift. The company's director represented the respondent in person, but the lack of formal HR processes likely contributed to the outcome.
Why this matters for similar claims
This case is a reminder that employment rights are enforceable even when an employer is struggling financially. Employees who are not paid can resign and claim constructive dismissal, and the tribunal will calculate compensation based on their age, service, and weekly pay. The ACAS uplift is a powerful tool for claimants where the employer has ignored statutory procedures. For anyone considering a similar claim, the key is to keep records of unpaid wages and any attempts to resolve the issue internally before resigning.
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