situation as follows 1.) changes to production by manger to inferior equipment / methods / raw materials 2.) a particularly awkward customer the employee hounded and harassed for months was blamed for events over which the employee had little or no control but still resulted in a written warning as there could be no improvement, after a short period (6 weeks) in which there was progressively more and more harassment a second written warning was issued the employee now thoroughly upset annoyed and angry at unjustifiable treatment, tears up the disciplinary notice, walks out, returns the next morning and hands in resignation effective immediately. the employment contract has a clause as follows "if you leave your employment without giving the correct amount of notice ,unless it has been agreed with the employer that you may do so, an amount equivalent to your salary for the unworked period of your notice will be deducted from your final salary" pay slip shows 94.5 hours worked, 1.5 hour o/t + 61.2 hours holiday pay , totalling to an gross amount of £1290.62 total payments £1290.62 - gross, for work done and including £502.45 accrued holiday pay, which is wrong as this should include an additional two days in lieu of worked bank holidays . deductions of £ 169.81 - for ni , tax, pension etc deductions of £1116.56 - for unworked notice net pay £4.25 firstly is this legal and why , to me this appears to be purely a penalty as no additional costs were incurred by the employer. the employee also had two of the weeks booked as a holiday no other staff was taken on to cover and even if any was then surely the amount deducted should only have been to cover any additional costs , in this case NIL also to my understanding it is illegal to withhold accrued holiday pay.