Cases6013677/2024

Claimant v GDSPL Limited

20 July 2025Before Employment Judge ChoudryBirminghamremote video

Outcome

Claimant succeeds

Individual claims

Automatic Unfair Dismissalsucceeded

The tribunal found that TUPE applied to the transfer of the business from NEC to the respondent on 1 May 2024. The claimant was dismissed on 21 August 2024 for alleged poor performance, but no credible evidence was provided. The tribunal concluded the dismissal was for a reason connected to the TUPE transfer, making it automatically unfair under TUPE Regulations 2006.

Unfair Dismissalstruck out

Struck out by judgment dated 7 November 2024 on the basis that the claimant did not have the requisite two years' service to bring an ordinary unfair dismissal claim.

Breach of Contractsucceeded

The claimant was entitled to two months' notice under his contract transferred from NEC. He was dismissed with only one week's notice. The tribunal awarded him 7 weeks' notice pay as he was entitled to 8 weeks total notice.

Unlawful Deduction from Wagessucceeded

The claimant was entitled to commission payments of 3% on completed work totalling £66,000, equating to £1,980. He was also entitled to pension contributions of £1,942.17 that had been deducted but not paid to his pension. The tribunal found these were unlawful deductions.

Holiday Paysucceeded

The claimant took 11 days' holiday while employed by the respondent but was entitled to further accrued but untaken holiday for the period January to August 2024, calculated at 14.5 days. The tribunal ordered payment of this accrued holiday at £2,185.00.

Breach of Contractsucceeded

The claimant was contractually entitled to a company car allowance under his transferred contract from NEC. The respondent failed to provide this from May to August 2024 and during his notice period, totalling 6 months at £600 per month. The tribunal awarded £3,600.

Facts

The claimant was employed by NEC (a large format printing business) as Business Development Director from September 2022. NEC entered insolvency on 30 April 2024 and employees were told they were redundant. On 1 May 2024, the respondent (also a printing business) acquired NEC's business and assets via a pre-pack administration sale for £45,000. The claimant continued working immediately for the respondent doing the same work, at the same premises, for the same clients. The respondent's director was also a director of NEC. The claimant was dismissed on 21 August 2024 for alleged poor performance without a fair procedure and with inadequate notice.

Decision

The tribunal found that TUPE applied to the transfer. The employees transferred with continuity of service, the same work continued at the same premises with the same equipment and clients, and key assets and goodwill were transferred. The claimant's dismissal was for a reason connected to the TUPE transfer and therefore automatically unfair. He was entitled to notice pay, holiday pay, pension contributions, commission, and compensation for loss of company car.

Practical note

In a pre-pack administration sale, TUPE can still apply even where employees are formally dismissed and re-hired if there is continuity of the economic entity, particularly where the same work continues immediately with the same employees, premises, equipment and clients.

Legal authorities cited

Spijkers v Gebroeders Benedik Abattoir CV [1986] ECR 1119Cheesman v R Brewer Contracts Ltd [2001] IRLR 144Schmidt v Spar-und Leihkasse [1994] IRLR 302Sanchez HidalgoOakland v Wellswood (Yorkshire) Ltd [2009]Abellio London Ltd v Musse & Ors [2012]Celtec Ltd v Astley [2006]Secretary for Trade and Industry v Slater [2007]

Statutes

Transfer of Undertakings (Protection of Employment) Regulations 2006TUPE Regulation 3(1)

Case details

Case number
6013677/2024
Decision date
20 July 2025
Hearing type
full merits
Hearing days
1
Classification
contested

Respondent

Sector
manufacturing
Represented
No
Rep type
in house

Employment details

Role
Business Development Director
Salary band
£50,000–£60,000
Service
2 years

Claimant representation

Represented
No