Unfair dismissal claim struck out due to insufficient service, but employee wins over £950 for other claims
A former employee of Esto Es Espana Ltd had their unfair dismissal claim thrown out because they had worked for less than two years. However, they were awarded £953 for unauthorised wage deductions, breach of contract, and unpaid annual leave.
1 min read · Last updated 19 May 2026
Case details
- #less-than-two-years-service
- #unauthorised-deduction
- #breach-of-contract-notice
- #untaken-annual-leave
Key facts
- The claimant was employed by the respondent for less than two years.
- The claimant's unfair dismissal complaint was struck out for lack of jurisdiction.
- The respondent made an unauthorised deduction from wages of £250.
- The claimant was dismissed in breach of contract regarding notice, awarded £300.
- The respondent failed to compensate for untaken annual leave, awarded £403.
Timeline
-
Judgment issued
Employment Judge Horne issued two judgments: one striking out the unfair dismissal claim, and another ordering payment for unauthorised deductions, breach of contract, and untaken annual leave.
The legal issue
The tribunal had to decide whether the employee had the required two years' continuous service to bring an unfair dismissal claim, and whether the employer had made unauthorised deductions from wages, breached contract by failing to give proper notice, and failed to pay for untaken annual leave.
The outcome
- The unfair dismissal claim was struck out because the employee had less than two years' service, meaning the tribunal had no jurisdiction to hear it.
- The employer was ordered to pay £250 for an unauthorised deduction from wages.
- The employer was ordered to pay £300 for breach of contract in respect of notice (calculated as gross pay to reflect potential tax on Post Employment Notice Pay).
- The employer was ordered to pay £403 for failing to compensate the employee for untaken annual leave on termination.
- Total award: £953.
Lessons & takeaways
- Employees with less than two years' continuous service generally cannot bring an unfair dismissal claim, unless the dismissal is for an automatically unfair reason (e.g., whistleblowing).
- Employers must ensure they pay all wages due, provide proper notice or pay in lieu, and compensate for untaken annual leave when employment ends.
- Even if an unfair dismissal claim fails, employees may still have other claims such as unauthorised deductions, breach of contract, or holiday pay that can succeed.
This case illustrates the importance of understanding the two-year service requirement for unfair dismissal claims. The former employee of Esto Es Espana Ltd had their unfair dismissal complaint struck out because they had not been employed for the minimum two years. However, the tribunal found that the employer had made several errors in handling the termination, resulting in a total award of £953.
What went wrong for the employer
The employer made an unauthorised deduction of £250 from the employee's wages, failed to provide proper notice (awarded £300), and did not pay for untaken annual leave (awarded £403). These are common pitfalls that can be avoided by ensuring payroll and HR processes are followed correctly. The employer could have avoided this by paying all sums due on termination and ensuring any deductions were authorised.
Why this matters for similar claims
This case is a reminder that employees with less than two years' service are not automatically without remedies. While they cannot claim unfair dismissal, they can still pursue claims for breach of contract, unauthorised deductions, and holiday pay. For employers, it highlights the need to comply with basic employment obligations regardless of an employee's length of service. The total award of £953, while modest, demonstrates that tribunals will enforce these rights even when the main claim fails.
Similar cases
Short-service employee wins wage claim but unfair dismissal struck out
A former employee with less than two years' service had her unfair dismissal claim struck out, but won £340 in unauthorised deduction and breach of contract claims.
Unfair dismissal claim fails due to short service, but unpaid wages claim succeeds
A former employee with less than two years' service had their unfair dismissal claim struck out, but recovered £1,263 in unpaid wages after the employer failed to respond.
Redundancy dismissal with less than two years' service: notice pay shortfall of £166
A former employee of Nubreed Hotels Ltd who was made redundant after just over a year was unable to claim unfair dismissal due to insufficient service, but won £166 for a two-day shortfall in notice pay.
Wage shortfall, unpaid leave and notice pay: a former employee wins £18k after employer goes into liquidation
A former employee who was owed wages, holiday pay and notice pay has been awarded £18,318.14 after their employer entered voluntary liquidation and did not defend the claim.