Claimant v MCE Insurance Ltd (In Creditors voluntary liquidation)
Outcome
Individual claims
The tribunal found that the employer's conduct amounted to a fundamental breach of contract entitling the claimant to resign and claim constructive dismissal. The respondent did not attend to defend the claim. The tribunal awarded a basic award and compensatory award for loss of statutory rights.
The respondent was in breach of its duty to provide a statement of particulars of employment under section 1 Employment Rights Act 1996. The tribunal awarded four weeks' pay pursuant to section 38 Employment Act 2002 as compensation for this breach.
The respondent failed to comply with section 188 Trade Union and Labour Relations (Consultation) Act 1992 regarding collective redundancy consultation. The tribunal awarded a protective award for the maximum period of 90 days at the claimant's daily rate of pay, starting from 7 June 2023.
Withdrawn by claimant
Facts
The claimant was employed by MCE Insurance Ltd, which entered creditors voluntary liquidation. The respondent constructively dismissed the claimant and failed to provide written particulars of employment. The company also failed to comply with collective consultation requirements under section 188 TULR(C)A 1992 before making redundancies. The respondent did not attend the hearing.
Decision
The tribunal found in favour of the claimant on all claims that proceeded. The tribunal awarded a basic award of £7,716, loss of statutory rights of £500, four weeks' pay (£2,805.40) for failure to provide written particulars, and a protective award of £9,017.10 for 90 days for failure to consult. The notice pay claim was withdrawn.
Practical note
When a company enters insolvency, employees can still pursue claims for constructive dismissal, failure to provide particulars, and failure to consult, with tribunals awarding the maximum protective award where the insolvent employer does not participate.
Award breakdown
Legal authorities cited
Statutes
Case details
- Case number
- 3310054/2023
- Decision date
- 29 September 2025
- Hearing type
- full merits
- Hearing days
- 1
- Classification
- contested
Respondent
- Sector
- financial services
- Represented
- No
Employment details
Claimant representation
- Represented
- Yes
- Rep type
- solicitor