Dismissed without notice after TUPE transfer: £34,000 award for unfair dismissal and unpaid wages
A former employee was unfairly dismissed by the new employer that took over the business, and awarded £34,485 for unfair dismissal, breach of contract, and unauthorised deductions from wages.
1 min read · Last updated 19 May 2026
Case details
Key facts
- The claimant was employed by the first respondent, which was dissolved.
- The second respondent took over the business via a TUPE transfer.
- The claimant was dismissed without notice by the second respondent.
- The second respondent failed to pay wages for 1-17 April 2023.
- The second respondent failed to pay holiday pay and provide written particulars.
- The complaint against the first respondent was withdrawn.
Timeline
-
Start of unpaid period
The claimant was not paid wages from 1 April 2023.
-
Dismissal date
The claimant was dismissed by the second respondent without notice.
-
Hearing and judgment
The Employment Tribunal heard the case and issued a judgment in favor of the claimant.
The legal issue
Whether the claimant was unfairly dismissed by the second respondent after a TUPE transfer, and whether the respondent made unauthorised deductions from wages and breached contract by failing to provide notice and written particulars.
The outcome
The tribunal ruled in favour of the claimant on all complaints against the second respondent.
- The complaint of unfair dismissal was well founded, and the second respondent was ordered to pay compensation of £34,385.
- The second respondent was in breach of contract by dismissing without notice, resulting in damages of £5,308.68 (net, based on gross pay as Post Employment Notice Pay).
- Unauthorised deductions from wages for the period 1-17 April 2023: £1,548.
- Unauthorised deduction for accrued but untaken holiday pay: £796.
- Breach of obligation to provide written statement of employment particulars: £1,769.56 (4 weeks' pay).
The complaint against the first respondent (dissolved company) was dismissed on withdrawal.
Lessons & takeaways
- If a business is taken over via a TUPE transfer, the new employer inherits the employees' contracts and must follow fair dismissal procedures.
- Failing to pay wages or holiday pay can lead to claims for unauthorised deductions, which tribunals treat seriously.
- Employers must provide a written statement of employment particulars within two months of the start of employment, or face a penalty of up to 4 weeks' pay.
- Dismissing an employee without notice is a breach of contract and can result in additional damages for notice pay.
A sudden dismissal after a business takeover
This case shows what can happen when a business changes hands and the new employer fails to honour the existing employment terms. The claimant was employed by a company that was later dissolved. A second company, Your Local Hadfield Ltd, took over the business through a TUPE transfer. Under TUPE rules, the new employer steps into the shoes of the old one and must maintain employees' contracts.
Shortly after the transfer, the claimant was dismissed without notice. The employer also stopped paying wages from 1 April 2023, leaving the claimant without pay for over two weeks before the dismissal on 17 April. The tribunal found that the dismissal was unfair and that the employer had made unauthorised deductions from wages by not paying the claimant for that period and by failing to pay accrued holiday pay.
What the employer could have done differently
The respondent did not attend the hearing, so the tribunal heard only the claimant's evidence. Had the employer engaged with the process, it might have been able to show a fair reason for dismissal and follow a proper procedure. Instead, the lack of notice and failure to pay wages and holiday pay led to multiple successful claims. Providing a written statement of employment particulars, which is a legal requirement, would have avoided an additional penalty of nearly four weeks' pay.
Why this matters for similar claims
This case is a reminder that TUPE transfers do not give a new employer a free hand to dismiss staff without following correct procedures. Employees who find themselves in a similar situation—dismissed without notice or pay after a business takeover—may have strong claims for unfair dismissal and breach of contract. The total award of over £34,000 reflects the cumulative impact of the employer's failures, including compensation for the dismissal itself, unpaid wages, holiday pay, and the lack of written particulars.
Similar cases
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.
TUPE transfer meant employer was not liable for constructive dismissal
Two employees who claimed constructive dismissal and unfair dismissal against Britannia Driving School Ltd had their claims dismissed after the tribunal found a TUPE transfer had already moved their employment to another company.
Former employee awarded £3,060 for unpaid holiday pay and notice
A former employee who was not paid her accrued holiday pay or notice pay has been awarded £3,060.72 by an employment tribunal. Her claims for unfair dismissal and age discrimination were dismissed.
Chef unfairly dismissed after TUPE transfer: employer failed to inform and consult
A chef was unfairly dismissed after her employment transferred to a new company under TUPE. The tribunal awarded over £12,800 for unfair dismissal, plus compensation for failure to inform and consult, unpaid holiday pay, and lost pension contributions.