Care home employee wins unfair dismissal and wage claim after unauthorised deduction
A care home employee was unfairly dismissed and had wages unlawfully deducted. The tribunal awarded £6,108 for breach of contract and unauthorised deduction, with a remedy hearing for unfair dismissal still to come.
1 min read · Last updated 19 May 2026
Case details
- #unauthorised-deduction
- #breach-of-contract
- #unfair-dismissal
- #remedy-hearing-pending
Key facts
- The respondent made an unauthorised deduction from the claimant's wages.
- The claimant was dismissed in breach of contract in respect of notice.
- The claim for unfair dismissal succeeded on liability.
- The remedy for unfair dismissal is to be determined at a later hearing.
Timeline
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Initial judgment
Employment Judge Allen issued a judgment finding unauthorised deduction, breach of contract, and unfair dismissal, ordering payment of £5,191.80 and £916.20.
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Judgment sent to parties
The initial judgment was sent to the parties.
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Respondent's application
The respondent applied to extend time for response and set aside the initial judgment.
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Hearing and new judgment
Employment Judge Dunlop heard the application and set aside the initial judgment, extending time for response.
The legal issue
The tribunal had to decide whether the employer made an unauthorised deduction from wages and breached the contract of employment by failing to give proper notice, and whether the dismissal was unfair.
The outcome
The tribunal ruled in favour of the employee on all three claims: unauthorised deduction, breach of contract (notice), and unfair dismissal. However, the initial judgment was later set aside due to the employer's late response, but the liability findings remain subject to a remedy hearing.
- Unauthorised deduction: £5,191.80
- Breach of contract (notice): £916.20
- Total damages: £6,108.00
- Unfair dismissal: liability established, remedy to be determined at a later hearing.
Lessons & takeaways
- Employers must ensure any deductions from wages are authorised by law or contract, or risk paying back the full amount.
- Failing to provide proper notice when dismissing an employee can lead to a separate claim for breach of contract.
- Even if an employer misses the deadline to respond to a claim, they may still get a second chance if they can show good reason, but this does not erase the underlying liability.
What this case shows
A care home employee brought claims after their employer made an unauthorised deduction from their wages and dismissed them without proper notice. The tribunal found in the employee's favour on all counts, awarding a total of £6,108 for the wage deduction and breach of contract. The unfair dismissal claim also succeeded on liability, but the amount of compensation for that part will be decided at a later hearing.
What the employer could have done differently
The employer could have avoided the unauthorised deduction by ensuring any wage reduction was properly agreed or legally permitted. They also should have provided the correct notice period under the contract. By failing to do so, they faced multiple claims and additional costs. The employer's late response to the tribunal led to an initial default judgment, which was later set aside, but the underlying liability remained.
Why this matters
This case highlights that employees can bring multiple related claims arising from the same dismissal. Even if an employer manages to get a default judgment set aside, they still have to defend the substance of the claims. For employees, it shows the importance of keeping records of payslips and contracts, and of seeking advice if deductions seem wrong or notice is not given.
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