Claimant v Whisky Merchants Trading Ltd
Outcome
Individual claims
The tribunal found the respondent unfairly dismissed the claimant. The respondent, being in administration, did not lodge a defence or attend the hearing. The claimant gave evidence and the tribunal accepted her case.
The claimant's contract entitled her to one month's notice but she received only three weeks' notice pay from the Insolvency Service. The respondent was therefore in breach of contract for the remaining one week's notice pay amounting to £749.94 gross.
The claimant had claimed various outstanding payments but subsequently received pay due on termination, outstanding holiday pay, statutory notice pay and statutory redundancy payment from the Insolvency Service, leaving only the contractual notice shortfall.
Facts
The claimant was employed by Whisky Merchants Trading Ltd which subsequently entered administration. She was dismissed and claimed unfair dismissal, breach of contract for notice pay, and other outstanding payments. The Insolvency Service paid her statutory notice pay (three weeks), holiday pay, redundancy payment and pay due on termination, but her contract entitled her to four weeks' notice, leaving one week unpaid. She was unemployed for 21 weeks, receiving Jobseeker's Allowance, before finding new part-time employment at significantly reduced hours and pay.
Decision
The tribunal found the respondent unfairly dismissed the claimant and breached her contract by failing to pay one week's contractual notice. The tribunal awarded £749.94 gross notice pay, £16,035.54 net compensatory award (comprising 21 weeks' past loss and 12 weeks' future loss reflecting ongoing reduced earnings in new part-time role), and £500 for loss of statutory rights, totaling £17,285.48.
Practical note
When an employer enters administration and the Insolvency Service pays statutory entitlements, employees may still have valid claims for contractual entitlements exceeding statutory minimums and can recover compensatory awards reflecting ongoing loss where new employment is at reduced hours and pay.
Award breakdown
Case details
- Case number
- 4100960/2025
- Decision date
- 4 October 2025
- Hearing type
- full merits
- Hearing days
- 1
- Classification
- contested
Respondent
- Sector
- retail
- Represented
- No
Employment details
Claimant representation
- Represented
- No