TUPE transfer and automatic unfair dismissal: employee wins after asserting statutory rights
A former employee of Plau Bistro Limited was automatically unfairly dismissed after asserting a statutory right following a TUPE transfer. The tribunal awarded £2,396.23 for unpaid wages, holiday pay, and notice pay.
1 min read · Last updated 19 May 2026
Case details
Key facts
- The claimant's employment transferred to the respondent on or about 21 November 2022 under TUPE.
- The claimant was automatically unfairly dismissed for asserting a statutory right.
- The respondent made unauthorised deductions from the claimant's wages.
- The respondent failed to pay accrued holiday entitlement.
- The respondent failed to give minimum statutory notice.
Timeline
-
TUPE transfer
The claimant's employment transferred to Plau Bistro Limited.
-
Hearing and judgment
Employment Judge Batten heard the case and issued judgment in favour of the claimant.
The legal issue
The tribunal had to decide whether the employee was automatically unfairly dismissed for asserting a statutory right, and whether the employer had made unauthorised deductions from wages and failed to pay holiday pay and notice pay.
The outcome
The tribunal ruled in favour of the former employee, finding that they were automatically unfairly dismissed for asserting a statutory right. The employer also made unauthorised deductions from wages and failed to pay accrued holiday pay and minimum statutory notice.
Compensation breakdown:
- Basic award for unfair dismissal: £376.25
- Unauthorised deductions from wages: £684.74
- Accrued holiday pay: £992.87
- Damages for failure to give notice: £342.37
- Total: £2,396.23
Lessons & takeaways
- Employees who assert a statutory right, such as requesting unpaid wages or holiday pay, are protected from dismissal – even if the employer is in financial difficulty.
- TUPE transfers do not allow a new employer to ignore existing employment rights or obligations.
- Employers must ensure they pay all wages, holiday pay, and notice pay on termination, or risk tribunal claims for multiple breaches.
This case shows what can happen when a new employer takes over a business under TUPE but fails to respect the transferred employees' rights. The former employee had their employment transferred to Plau Bistro Limited in November 2022, but the company soon made unauthorised deductions from wages, failed to pay holiday pay, and eventually dismissed the employee for asserting their statutory rights.
What the employer did wrong
The employer not only dismissed the employee for raising legitimate concerns about pay, but also failed to give proper notice or pay what was owed. The tribunal found that the dismissal was automatically unfair because it was triggered by the employee asserting a statutory right – a protected act. Additionally, the employer made deductions without authorisation and withheld holiday pay, which are clear breaches of employment law.
What this means for similar claims
This case is a reminder that employees who are transferred under TUPE retain all their existing rights, and the new employer cannot simply ignore them. If an employer dismisses an employee for asserting a statutory right, the dismissal is automatically unfair, and the employee may be entitled to compensation even if they have limited service. The total award of £2,396.23 covered the basic award, unpaid wages, holiday pay, and notice pay, reflecting the multiple failures by the employer.
Similar cases
Unfair dismissal but 100% Polkey reduction due to workplace closure
A former employee was unfairly dismissed but received only limited compensation because the tribunal found he would have been fairly dismissed a month later when the workplace closed. Total award: £12,419.29.
Site closure without process: redundancy dismissal ruled unfair
A former employee with three years' service was unfairly dismissed after his site closed and the employer failed to follow any redundancy process. The tribunal awarded over £44,000 in compensation.
Less than two years' service: unfair dismissal claim struck out, but notice and holiday pay awarded
A former employee who was dismissed without notice after less than two years' service had their unfair dismissal claim struck out, but won £1,514 for notice and holiday pay.
Unauthorised deductions and ACAS uplift: former employee awarded £34,597
A former employee of T33 Holdings Ltd has been awarded £34,597.88 after the tribunal found the company made unauthorised deductions from wages, failed to pay notice pay, and unreasonably failed to comply with the ACAS Code of Practice.