Going unpaid for months can be enough on its own to justify resigning
“Constructive unfair dismissalA legal claim you can bring if your employer dismissed you without a fair reason or without following a fair process. You normally need two years of continuous employment to qualify, though some dismi... and unlawful wage deductions both succeeded.”
Going unpaid for a sustained period can be a fundamental breach of your contract, entitling you to resign and claim constructive dismissalWhen your employer's behaviour is so serious that you feel you have no choice but to resign, the law may treat that resignation as a dismissal. The most common basis is a fundamental breach of the imp..., and you can still recover the wages you were owed on top of that.
- Persistent non-payment of wages is not something you have to simply wait out. It can justify resigning and claiming constructive dismissal.
- Keep a written record of what you're owed and when. This is central evidence for both a wages claim and a constructive dismissal claim.
- Get advice before you resign. Timing and how you explain your resignation both affect whether a constructive dismissal claim succeeds.
The situation
The claimant was not paid his wages for around four and a half months. He eventually resigned in response and brought tribunal claims for constructive unfair dismissal and unauthorised deductions from wages. His employer, later in creditors' voluntary liquidationVoluntary liquidation is when a company's directors or shareholders choose to close it down and sell its assets to pay off debts, rather than being forced to by a court. If your employer goes into vol..., did not attend the hearing or defend the claim.
What the tribunal found
The tribunal found the claimant had been constructively and unfairly dismissed, and that the unpaid wages amounted to unlawful deductions under Part II of the Employment Rights Act 1996The primary piece of legislation setting out employees rights in the UK, including the right not to be unfairly dismissed, the right to a written statement of employment particulars, and rights relati.... Going unpaid for that length of time was treated as a fundamental breach of contractWhen one party to an employment contract fails to comply with one of its terms without a lawful reason. Your employer breaching a significant term of your contract can entitle you to resign and claim ..., entitling him to resign and claim constructive dismissal under Part X of the same Act. He was awarded £43,335 in total. That included a basic awardA fixed element of an unfair dismissal award, calculated by reference to your age, length of service, and weekly pay. Unlike the compensatory award, it is less affected by Polkey reductions., a compensatory awardThe main part of an unfair dismissal award, calculated to cover your actual financial loss. It is not automatic and can be reduced, including to nil, if the tribunal concludes you would have been dism... covering lost future earnings, and repayment of the wages themselves. A separate holiday payThe pay you receive for the paid annual leave you're entitled to under UK law, worth at least 5.6 weeks a year for most workers. It's usually calculated from your normal pay, though the exact method d... claim was dismissed.
For a related situation, see our case study on an employer who stopped paying wages and gave no notice.
Mr B King v Jamkam Ltd (In Creditors Voluntary Liquidation). Case 1401443/2025. Employment Tribunal. 3 June 2026.