Claimant was dismissed without notice and the Tribunal found that notice pay and holiday pay should be paid at a newer rate of national minimum wage rather than the old rate the claimant received.

The claimant commenced work for the respondent as a Booking Office Assistant in January 2025. The claimant was paid at a rate of £11.44 per hour. During her employment, the national minimum wage increased from £11.44 to £12.21 from 1st April 2025. The claimant’s employment ended on 12th May 2025 when she was dismissed without notice.  Subsequently, the respondent company became insolvent but had not been formally liquidated or entered administration.

The claimant made a claim for outstanding notice pay and holiday pay.

The Tribunal found that as the claimant had been employed for four months, she was entitled to one month’s notice pay. Additionally, they found that the notice pay should be at the new national minimum wage which came into effect from 1st April 2025 rather than the rate of pay that the claimant was receiving. Furthermore, the holiday pay was also to be calculated based upon the new national minimum wage. As a result, there was a payment of £146.52 for the notice pay and £268.82 for the holiday pay.

This case may have had small figures but does demonstrate the Tribunal’s view when it comes to the national minimum wage and changes in that could have a knock-on effect relating to holiday pay and notice pay. It would be perverse to suggest that notice pay, or holiday pay should be at an older lower rate. The Tribunal operated with a common-sense approach in allowing for the increased figure to give those orders.

NI Tribunal decisions are available on the OITFET website.