Claimant v Renfrew Transport Services Ltd
Outcome
Individual claims
The tribunal found that the claimant was constructively dismissed when she resigned on 14 January 2025 due to the respondent's fundamental breach (non-payment of wages). The reason for dismissal was redundancy as the employer was ceasing to trade. The claimant was entitled to 11 weeks' pay based on her age and service.
The claim for notice pay failed because the claimant resigned (constructive dismissal). As she terminated the contract herself, albeit in response to a fundamental breach, she was not entitled to notice pay from the employer.
The respondent made unauthorised deductions from wages by failing to pay the claimant for the 6-week period from 1 December 2024 to 14 January 2025. The claimant was entitled to her net weekly pay of £341 for each of those weeks.
The claimant had accrued 22 days pro-rated holiday entitlement and had taken only 6 days, leaving 16 days untaken. Under the Working Time Regulations, she was entitled to payment in lieu calculated at her daily rate of £68.20.
Facts
The claimant worked as a finance assistant for 11 years from August 2013 until January 2025, working 30 hours per week from home earning £425 gross per week. In December 2024, the respondent ceased trading and stopped paying the claimant's wages from 5 December 2024. Despite requests from the managing director to continue working, the claimant received no payment. She secured new employment starting 14 January 2025 and resigned at that point, having not been paid for approximately 6 weeks.
Decision
The tribunal found the claimant was constructively dismissed on 14 January 2025 when she resigned due to the respondent's fundamental breach of contract in failing to pay wages. The reason for dismissal was redundancy as the employer was ceasing to trade. The tribunal awarded statutory redundancy pay of £4,675, unpaid wages of £2,046 for 6 weeks, and holiday pay of £1,091.20 for 16 days accrued but untaken. The claim for notice pay failed as the claimant resigned.
Practical note
Non-payment of wages can constitute a fundamental breach justifying constructive dismissal, and where that breach is caused by redundancy circumstances, the employee is entitled to both redundancy pay and arrears despite having resigned.
Award breakdown
Award equivalent: 18.4 weeks' gross pay
Legal authorities cited
Statutes
Case details
- Case number
- 8000777/2025
- Decision date
- 27 August 2025
- Hearing type
- full merits
- Hearing days
- 1
- Classification
- contested
Respondent
- Sector
- transport
- Represented
- No
Employment details
- Role
- finance assistant
- Salary band
- £20,000–£25,000
- Service
- 11 years
Claimant representation
- Represented
- No