Unfair dismissal and unpaid notice: a procedural failure that cost £8,000
A former employee was unfairly dismissed and denied proper notice pay and annual leave. The tribunal awarded £8,000 after finding the employer failed to follow a fair process.
1 min read · Last updated 19 May 2026
Case details
Key facts
- The claimant was unfairly dismissed by the respondent.
- The respondent failed to give the claimant 3 calendar months' notice of termination.
- The respondent failed to pay the claimant for one day's accrued annual leave on termination.
- There was no oral agreement for payment of additional days worked.
- The respondent did not refuse rest breaks.
- The compensatory award is reduced by 75% for the chance of fair dismissal on 27 May 2023.
Timeline
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Notice withdrawal
The claimant withdrew his notice in June 2022, but no oral agreement was made for payment of additional days.
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Hypothetical fair dismissal date
The tribunal found a 75% chance the claimant would have been fairly dismissed on this date.
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First hearing day
Substantive hearing commenced at Liverpool Employment Tribunal.
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Second hearing day
Substantive hearing continued.
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Judgment on liability
Employment Judge Horne issued judgment finding unfair dismissal and breach of contract.
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Remedy hearing
By consent, the respondent was ordered to pay £8,000.00 in total.
The legal issue
The tribunal had to decide whether the employer's dismissal was procedurally fair and whether it breached the employment contract by not giving the required notice and not paying for accrued annual leave.
The outcome
The tribunal found that the former employee was unfairly dismissed. The employer failed to give the contractual three months' notice and did not pay for one day of accrued annual leave.
Compensation was reduced by 75% to reflect the chance that the employee would have been fairly dismissed on 27 May 2023. It was then increased by 25% because the employer unreasonably failed to follow the ACAS Code of Practice.
- Total award: £8,000 (by consent)
- The award includes compensation for unfair dismissal and breach of contract for notice pay and annual leave.
Lessons & takeaways
- Employers must follow a fair procedure before dismissing an employee, even if they believe there is a good reason.
- Contractual notice periods must be honoured; failing to give proper notice is a breach of contract.
- Accrued annual leave must be paid on termination, even if the dismissal is disputed.
- Failure to follow the ACAS Code of Practice can increase compensation by up to 25%.
- Tribunals may reduce compensation if they find there was a chance the employee would have been dismissed fairly anyway.
What this case shows
This case highlights the importance of following proper procedures when dismissing an employee. The employer, Anderbury Ltd, dismissed its employee without giving the contractual three months' notice and failed to pay for one day of accrued annual leave. The tribunal found the dismissal unfair because the process was flawed.
What the employer could have done differently
Anderbury Ltd could have avoided this claim by giving proper notice and paying all sums due on termination. More importantly, it should have followed a fair process, including giving the employee a chance to respond to concerns before deciding to dismiss. The tribunal also noted that the employer unreasonably failed to follow the ACAS Code of Practice, leading to a 25% uplift in compensation.
Why this matters
This case is a reminder that procedural fairness is not optional. Even if an employer believes dismissal is justified, cutting corners can lead to a finding of unfair dismissal and additional costs. Employees should be aware that they may be entitled to notice pay and accrued holiday pay, and that compensation can be reduced if the tribunal thinks they would have been dismissed anyway. The £8,000 award here reflects both the unfair dismissal and the contractual breaches.
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