Claimant v Axiom Ince Limited (in administration)
Outcome
Individual claims
The respondent summarily dismissed the claimant without following a fair procedure. The respondent did not defend the claim having entered administration. The tribunal found the dismissal was unfair under Part X of the Employment Rights Act 1996.
The claimant was entitled to accrued but untaken holiday pay on termination of employment under Regulation 14 of the Working Time Regulations 1998. The tribunal awarded one week's holiday pay calculated at the claimant's gross weekly rate.
The claimant's contract provided for three months' notice. The respondent terminated his employment summarily and in breach of that contractual term. The claimant was entitled to damages for the notice period, subject to mitigation after finding new employment after two and a half months.
Facts
The claimant was employed as an executive assistant from March 2017 on a salary of £60,000 with benefits including a Tesla company car and employer pension contributions. His contract required three months' notice. The respondent, a law firm, summarily dismissed him on 4 September 2023 without notice as it was ceasing to trade and later entered administration. The claimant found new employment after two and a half months but at lower salary and benefits. The respondent did not defend the claims.
Decision
The tribunal found all three claims succeeded: unfair dismissal, wrongful dismissal, and unpaid holiday pay. Under Polkey, the compensatory award for unfair dismissal was limited to £500 for loss of statutory rights as the claimant would have been fairly dismissed by redundancy anyway. However, the claimant was awarded full damages for wrongful dismissal (£16,282) reflecting his three-month notice period less mitigation, plus basic award (£3,858) and one week's holiday pay (£1,153).
Practical note
The Polkey principle applies to reduce unfair dismissal compensatory awards where fair dismissal was inevitable, but does not reduce contractual damages for wrongful dismissal, which are governed by ordinary contractual principles.
Award breakdown
Award equivalent: 18.9 weeks' gross pay
Adjustments
The tribunal found that applying Polkey, the claimant's employment would have come to an end fairly that autumn in any event by reason of redundancy as the law firm was ceasing to trade. This prevented a compensatory award beyond loss of statutory rights but did not apply to contractual damages.
Legal authorities cited
Statutes
Case details
- Case number
- 3312343/2023
- Decision date
- 7 October 2025
- Hearing type
- full merits
- Hearing days
- 1
- Classification
- contested
Respondent
- Sector
- legal services
- Represented
- No
Employment details
- Role
- Executive Assistant
- Salary band
- £60,000–£80,000
- Service
- 7 years
Claimant representation
- Represented
- No