Distressed union in a hole (3,2)
I believe the answer is:
cut up
'distressed' is the definition.
(I've seen this before)
'union in a hole' is the wordplay.
'union' becomes 'tu' (I've seen this in other clues).
'in' indicates putting letters inside.
'a hole' becomes 'cup' (cup is a kind of hole).
'tu' put within 'cup' is 'CUT-UP'.
(Other definitions for cut up that I've seen before include "Chop into bits - deeply offended" , "Deeply distressed (slang)" , "Dice, chop" , "Miserable" , "Very unhappy" .)