Cases3302379/2023

Claimant v Select Fashion Ltd (in creditors voluntary liquidation)

1 August 2025Before Employment Judge Andrew Clarke KCWatfordremote video

Outcome

Other

Individual claims

Direct Discrimination(sex)not determined

This preliminary hearing determined only whether the tribunal had jurisdiction to hear the claim. The substantive merits of the sex discrimination complaint have not yet been adjudicated.

Harassment(sex)not determined

This preliminary hearing determined only whether the tribunal had jurisdiction to hear the claim. The substantive merits of the harassment complaint related to sex have not yet been adjudicated.

Victimisationnot determined

This preliminary hearing determined only whether the tribunal had jurisdiction to hear the claim. The substantive merits of the victimisation complaint have not yet been adjudicated.

Direct Discrimination(pregnancy)not determined

Although not expressly pleaded in the claim form, the claimant contends that complaints of unfavourable treatment during the protected period in relation to her second pregnancy are properly characterised as pregnancy discrimination. The substantive merits have not yet been adjudicated.

Facts

The claimant was employed from November 2009, eventually becoming an employee of the first respondent after a TUPE transfer in June 2022. She presented a claim for sex discrimination, harassment, and victimisation in March 2023. She was dismissed in April 2023. The first respondent entered into a Company Voluntary Arrangement (CVA) in May 2023, which specifically required the claimant to discontinue her tribunal claim and have it adjudicated by the CVA supervisors instead. The respondents argued the CVA ousted the tribunal's jurisdiction; the claimant argued this breached the EU principle of effectiveness.

Decision

The tribunal determined it does have jurisdiction to hear the claimant's claims. The CVA provisions do not fall within section 144 EqA as the CVA is not a 'contract' requiring mutual consent. However, applying the EU principle of effectiveness, which requires effective judicial protection for discrimination rights, the CVA's dispute resolution mechanism (adjudication by accountants/insolvency practitioners, not employment law specialists) does not provide effective protection. The tribunal's jurisdiction is therefore not ousted by the CVA.

Practical note

A Company Voluntary Arrangement cannot be used to oust an Employment Tribunal's jurisdiction over discrimination claims because the EU principle of effectiveness requires specialist adjudication of EU-derived employment rights, which a CVA process cannot provide.

Legal authorities cited

Re Britannia Heat Transfer Ltd (In Administration) [2007] BPIR 1038Ms H. Parry v New Look Retailers Limited case no. 2409303/2020Ms S. Jackson v New Look Retailers Limited case no. 1803618/2019

Statutes

Insolvency Rules 2016 Rule 14.1(3)Insolvency Rules 2016 Rule 14.2Equality Act 2010 s.120(1)Directive 2006/54/ECCouncil Directive 76/207/EECEquality Act 2010 s.124(2)Equality Act 2010 s.144Employment Rights Act 1996 s.203Insolvency Act 1986 Part 1Insolvency Act 1986 s.1(1)

Case details

Case number
3302379/2023
Decision date
1 August 2025
Hearing type
preliminary
Hearing days
1
Classification
contested

Respondent

Sector
retail
Represented
Yes
Rep type
barrister

Employment details

Service
14 years

Claimant representation

Represented
Yes
Rep type
barrister