Unfair dismissal and unpaid wages: former employee awarded £12,503
A former employee has been awarded £12,503 after an employment tribunal found she was unfairly dismissed, not given notice, and had wages unlawfully deducted by RR Swami Ltd.
1 min read · Last updated 19 May 2026
Case details
- #unlawful-deduction-from-wages
- #wrongful-dismissal
- #unfair-dismissal
- #written-statement-of-reasons
- #working-time-regulations
- #acas-code-uplift
Key facts
- The claimant was employed by the first respondent.
- The first respondent failed to pay holiday pay due under the Working Time Regulations.
- The first respondent made unauthorised deductions from wages between September and November 2022.
- The first respondent terminated the claimant's employment without notice.
- The dismissal was unfair under section 98 of the Employment Rights Act 1996.
- The first respondent failed to provide a written statement of reasons for dismissal.
Timeline
-
Unauthorised deductions begin
The first respondent began making unauthorised deductions from the claimant's wages.
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Unauthorised deductions end
The period of unauthorised deductions ended in November 2022.
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Hearing day 1
The employment tribunal hearing commenced.
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Hearing day 2
The hearing concluded and judgment was reserved.
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Judgment sent
The written judgment was issued.
The legal issue
The tribunal had to decide whether the employee's complaints of unlawful deduction from wages, breach of contract, unfair dismissal, failure to provide written reasons, protected disclosure detriment, and disability discrimination were well founded.
The outcome
The tribunal upheld complaints of unlawful deduction from wages (including holiday pay), breach of contract by terminating without notice, and unfair dismissal. Claims of protected disclosure detriment and disability discrimination were dismissed.
Compensation breakdown:
- Damages for wrongful dismissal: £2,696.80
- 10% ACAS uplift on wrongful dismissal: £269.68
- Unlawful deductions (including holiday pay): £3,047.31
- 10% ACAS uplift on deductions: £304.73
- Two weeks' pay for failure to provide written reasons: £798
- Basic award for unfair dismissal: £5,386.50
- Total: £12,503.02
Lessons & takeaways
- Employers must provide a written statement of reasons for dismissal if requested, or face a penalty of two weeks' pay.
- Unauthorised deductions from wages, including failure to pay holiday pay, are unlawful and can be claimed back.
- Dismissing an employee without notice is a breach of contract and can lead to wrongful dismissal damages.
- An ACAS Code uplift of up to 25% can be applied if the employer unreasonably fails to comply with disciplinary procedures.
This case shows how a combination of employment law breaches can lead to significant compensation for an employee. The former employee of RR Swami Ltd was dismissed without notice, had unauthorised deductions taken from her wages, and was not given a written statement of reasons for her dismissal. The tribunal found all these complaints well founded, awarding a total of £12,503.02.
What went wrong for the employer?
The employer failed to follow basic legal requirements. It made deductions from wages without authorisation, including failing to pay holiday pay due under the Working Time Regulations. It also terminated the employment without giving any notice, which is a breach of contract. Additionally, it did not provide a written statement of reasons for dismissal, which is a statutory right for employees with at least two years' service.
The tribunal also applied a 10% uplift to the wrongful dismissal and unlawful deduction awards because the employer unreasonably failed to comply with the ACAS Code of Practice on disciplinary and grievance procedures. This uplift could have been up to 25%.
Why this matters for similar claims
This case is a reminder that employees can bring multiple claims arising from the same employment relationship. Even where some claims fail (here, protected disclosure and disability discrimination were dismissed), successful claims can still result in a substantial award. The ACAS Code uplift is a powerful tool for tribunals to penalise employers who ignore fair procedures.
For employees considering a claim, it is important to keep records of any deductions from wages and to request written reasons for dismissal. Employers should ensure they follow proper procedures, provide notice or pay in lieu, and comply with requests for written reasons.
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