Chef de rang awarded £4,682 after furlough pay miscalculation
A chef de rang received £4,682 after his employer miscalculated his furlough pay. The tribunal found the restaurant had used the wrong reference salary but rejected his constructive dismissal claim.
1 min read · Last updated 19 May 2026
Case details
- #furlough-pay
- #service-charge
- #tronc
- #national-minimum-wage
- #constructive-dismissal
- #overtime
Key facts
- The claimant was employed as a Chef de Rang from 9 October 2018 until 8 June 2021.
- His salary was increased to £24,000 per annum in February 2019, with part paid via a tronc system from June 2019.
- The claimant was furloughed during the COVID-19 pandemic from March 2020 to May 2021.
- The respondent calculated furlough pay based on 80% of £1,667 per month instead of 80% of £2,000 per month.
- The claimant resigned on 31 May 2021 and brought forward his resignation to 8 June 2021 after learning of changes to the service charge arrangement.
- The tribunal found the claimant was not constructively dismissed and the unfair dismissal claim failed.
Timeline
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Employment started
Claimant began work as Chef de Rang at a salary of £19,000 per annum.
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Salary increase agreed
Claimant's salary increased to £24,000 per annum, pending resolution of service charge issue.
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Tronc system introduced
A tronc system was introduced; claimant received a guaranteed monthly tronc payment of £333.33.
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Agreement to limit hours
Claimant and respondent agreed claimant would work strictly 48 hours per week.
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Furlough began
Claimant placed on furlough due to COVID-19; received 80% of £1,667 per month.
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Flexible furlough started
Claimant returned to work part-time on flexible furlough.
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Full furlough resumed
Claimant placed on full furlough again from January to May 2021.
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Grievance raised
Claimant raised grievance about pay not matching hours worked and NMW concerns.
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Service charge change announced
Respondent announced tronc would be disbanded and service charge included in basic pay.
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First resignation
Claimant gave one month's notice, intending to leave on 29 June 2021.
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Resignation brought forward
Claimant resigned with immediate effect, citing unilateral change to pay terms.
The legal issue
The tribunal had to decide whether the employer made unauthorised deductions from wages by miscalculating furlough pay, and whether the employee was constructively unfairly dismissed after resigning over a change to service charge arrangements.
The outcome
The tribunal upheld the claim for unauthorised deductions relating to furlough pay, awarding £4,681.62 gross. However, it rejected the constructive unfair dismissal claim, finding that the employee was not dismissed because his resignation was not in response to a fundamental breach of contract.
- Unauthorised deductions: £4,681.62 (gross) for underpaid furlough pay.
- Constructive dismissal: Claim failed – the tribunal found the employer's change to service charge arrangements did not amount to a fundamental breach.
Lessons & takeaways
- Furlough pay must be calculated on the correct reference salary, including regular tronc payments if they form part of normal pay.
- Resigning in response to a change in pay structure may not amount to constructive dismissal if the change is not a fundamental breach of contract.
- Keep clear records of pay calculations and ensure any changes to pay terms are clearly communicated and agreed.
- Employees should raise grievances about pay issues promptly to preserve their position.
What this case shows
This case highlights how easy it is for employers to miscalculate furlough pay, especially when pay includes variable elements like tronc (service charges). The chef de rang, who had worked at The Clock House Restaurant Ltd for nearly three years, was placed on furlough during the pandemic. His employer calculated his furlough pay based on a monthly salary of £1,667, but his actual salary was £2,000 per month – a difference that led to significant underpayment over several months.
The tribunal found that the employer had made an unauthorised deduction by using the wrong reference salary. The chef was entitled to 80% of his full salary, not a reduced figure. This error cost the restaurant over £4,600 in back pay.
What the employer could have done differently
The restaurant could have avoided this claim by checking its furlough calculations against HMRC guidance, which made clear that reference salary should include regular payments like guaranteed tronc. Instead, it appears the employer used a lower figure without proper justification. The tribunal noted that the chef had raised concerns about his pay during furlough, but the employer did not correct the error until after he resigned.
Why the result matters
For employees, this case is a reminder that furlough pay must reflect your normal earnings, including regular bonuses or service charges. For employers, it shows that getting the calculation wrong can lead to a successful wage claim, even if the employee later resigns. However, the rejection of the constructive dismissal claim also shows that not every change to pay terms will justify walking out – employees need to show a fundamental breach of contract to succeed in such a claim.
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