Former employee awarded £2,353 after CTMG Limited made unauthorised deductions and breached contract
A former employee of CTMG Limited has won £2,353 after the company made unauthorised deductions from wages, including a 'week in hand', and dismissed them without proper notice. The unfair dismissal claim was struck out due to insufficient service.
1 min read · Last updated 18 May 2026
Case details
- #unauthorised-deduction-from-wages
- #breach-of-contract
- #week-in-hand
- #holiday-pay
- #notice-pay
- #strike-out
Key facts
- The claimant was employed by CTMG Limited for less than two years.
- The respondent failed to present a valid response on time.
- The respondent made an unauthorised deduction from wages for hours worked, including a 'week in hand'.
- The claimant was dismissed in breach of contract without proper notice.
- The respondent failed to pay the claimant for accrued but untaken holiday entitlement.
Timeline
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Claim issued
The claimant issued a claim in the North West Employment Tribunals.
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Judgment given
Employment Judge Slater struck out the unfair dismissal complaint due to insufficient service, but upheld claims for unauthorised deductions and breach of contract.
The legal issue
The tribunal had to decide whether the employee had sufficient service to bring an unfair dismissal claim, and whether the employer made unauthorised deductions from wages and breached contract by failing to give notice.
The outcome
The tribunal struck out the unfair dismissal complaint because the employee had less than two years' service, which is required under section 108 of the Employment Rights Act 1996.
However, the tribunal upheld claims for unauthorised deductions and breach of contract, as the employer failed to present a valid response. The employee was awarded:
- £1,100 for unauthorised deduction from wages (including a 'week in hand')
- £1,000 for breach of contract (notice pay)
- £253.82 for unpaid holiday entitlement
Total: £2,353.82.
Lessons & takeaways
- Employees with less than two years' service cannot bring an unfair dismissal claim, but may still pursue claims for unauthorised deductions or breach of contract.
- Employers who fail to respond to a tribunal claim risk a default judgment, which can lead to significant awards against them.
- Deductions such as a 'week in hand' must be lawful and agreed in the contract, otherwise they may be unauthorised.
- Accrued holiday pay must be paid on termination, even if the employee has less than two years' service.
When an employer fails to respond
This case shows what can happen when an employer ignores a tribunal claim. The former employee of CTMG Limited brought claims for unfair dismissal, unauthorised deductions, and breach of contract. Because the employer did not file a valid response, the tribunal was able to decide the case without a hearing.
The service trap
The unfair dismissal claim was struck out because the employee had worked for less than two years. Under UK law, most employees need two years' continuous service to bring an unfair dismissal claim. This is a common hurdle for new starters, but it does not prevent them from bringing other types of claim.
What the employer did wrong
The tribunal found that CTMG Limited had made unauthorised deductions from the employee's wages, including a 'week in hand' arrangement that was not properly agreed. The employer also failed to give proper notice when dismissing the employee, and did not pay for accrued holiday. These are basic obligations that all employers must meet, regardless of the employee's length of service.
What this means for similar claims
For employees, this case is a reminder that even if you cannot claim unfair dismissal, you may still have strong claims for unpaid wages, notice pay, and holiday pay. For employers, it highlights the importance of responding to tribunal claims and ensuring that deductions from wages are lawful and clearly documented in the employment contract.
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