Claimant v Stubbs Construction Limited in creditors' voluntary liquidation
Outcome
Individual claims
The tribunal made a declaration that the first respondent made unlawful deductions from wages for arrears of pay and holiday pay as claimed. The claimants had already made claims in liquidation. The respondent company was in creditors' voluntary liquidation and did not attend.
Holiday pay claims succeeded against the insolvent first respondent by declaration. The Secretary of State had refused payment via Redundancy Payments Service applying settled law in Briman. Claims against the third respondent were dismissed as the Secretary of State had no liability under that case law.
Arrears of pay claims succeeded against the insolvent first respondent by declaration. The claimants were content with declaratory relief as claims had already been made in liquidation, though recovery was doubtful. Claims against second respondent withdrawn; against third respondent dismissed applying Briman.
Facts
Eighteen employees of Stubbs Construction Limited brought claims for holiday pay and arrears of pay after the company went into creditors' voluntary liquidation in November 2024. All employees were dismissed between 8-12 November 2024 following breach of a CVA that had been in place since December 2023. Redundancy and notice pay had been paid by the Redundancy Payments Service, but holiday pay and arrears were refused.
Decision
The tribunal granted declaratory relief against the insolvent first respondent for unlawful deductions of wages (arrears and holiday pay). Claims against the liquidators (second respondent) were withdrawn. Claims against the Secretary of State (third respondent) were dismissed applying settled case law (Briman) that the state has no liability for such payments in insolvency.
Practical note
Following Briman, the Secretary of State has no liability to pay holiday pay or arrears of pay via the Redundancy Payments Service when an employer becomes insolvent, leaving employees as unsecured creditors with little prospect of recovery.
Legal authorities cited
Case details
- Case number
- 1800823/2025
- Decision date
- 2 January 2026
- Hearing type
- full merits
- Hearing days
- 1
- Classification
- contested
Respondent
- Sector
- construction
- Represented
- No
Claimant representation
- Represented
- Yes
- Rep type
- lay rep