Automatically unfair dismissal

Case 1: The facts

Mr Pearce and his son alleged that their employer had made unlawful deductions of wages by failing to pay sick pay and travelling time that they believed they were entitled to under the terms of their contract.

They threatened to go to a tribunal. This led to a dispute with their employer, following which they resigned and claimed constructive unfair dismissal. They argued that their dismissal was the result of their assertion of their statutory right not to have unlawful deductions from their wages, and so was automatically unfair. A tribunal chairman struck out this part of their claim.

The ruling

The Employment Appeal Tribunal held that the right to bring a claim of unlawful deduction of wages is a protected right, and a dismissal for asserting that right would be automatically unfair under section 104 of the Employment Rights Act 1996. The claim was allowed to proceed.

Pearce and Pearce v Dyer UKEAT/0465/04