Claimant v Secretary of State for Business and Trade
Outcome
Individual claims
The tribunal dismissed the claims for arrears of pay on the grounds that the Respondent had already paid each Claimant eight weeks' pay out of the National Insurance Fund. Section 184(1)(a) and (2)(d) of the Employment Rights Act 1996 limits total arrears of pay, including remuneration under a protective award, to a maximum of eight weeks. The Respondent had no further liability.
Facts
Three claimants, former employees of insolvent employer Tingdene Homes Ltd, brought claims against the Secretary of State for Business and Trade for unpaid wages from 1 November 2023 to 5 December 2023. They had already received eight weeks' pay from the National Insurance Fund covering a protective award period running from 5 December 2023 to 4 March 2024. The claimants argued they were entitled to additional payment for the earlier period as there was no overlap.
Decision
The tribunal dismissed all three claims. Employment Judge Tynan held that section 184 of the Employment Rights Act 1996 limits total arrears of pay recoverable from the National Insurance Fund to a maximum of eight weeks, and this includes remuneration under a protective award. Since each claimant had already been paid eight weeks' pay, the Respondent had no further liability regardless of whether the periods overlapped.
Practical note
When claiming from the National Insurance Fund following employer insolvency, the eight-week statutory cap on arrears of pay under s.184 ERA 1996 applies to the total of all arrears including protective award payments, not separately to each type of payment.
Legal authorities cited
Statutes
Case details
- Case number
- 3301204/2025
- Decision date
- 7 November 2025
- Hearing type
- full merits
- Hearing days
- 1
- Classification
- contested
Respondent
- Sector
- central government
- Represented
- No
Claimant representation
- Represented
- No