Cases3305577/2023

Claimant v Secretary of State for Business and Trade

9 July 2025Before Employment Judge Andrew Clarke KCReadingin person

Outcome

Claimant succeeds£15,938

Individual claims

Redundancy Paysucceeded

The tribunal found that the claimant worked for the second respondent under a contract of employment and was entitled to a redundancy payment, which the Secretary of State is liable to pay as the employer company is now dissolved.

Unlawful Deduction from Wagessucceeded

The tribunal found the claimant was owed unpaid wages from his employment with the second respondent, and the Secretary of State is liable to make this payment.

Holiday Paysucceeded

The tribunal found the claimant was entitled to payment in lieu of accrued but untaken annual leave, for which the Secretary of State is liable.

Breach of Contractsucceeded

The tribunal found the claimant was entitled to statutory notice pay, which the Secretary of State is liable to pay as the employer company is dissolved.

Facts

The claimant worked for Smartuki Motorsport Limited under a contract of employment. The company has since been dissolved, leaving unpaid debts to the claimant. The claimant brought claims against the Secretary of State for Business and Trade for redundancy pay, unpaid wages, holiday pay, and notice pay. The Secretary of State did not contest the claims on limitation grounds or on the basis of employment status.

Decision

The tribunal found that the claimant was an employee under section 230 of the Employment Rights Act 1996 and awarded him redundancy pay of £6,461.56, unpaid wages of £3,692.32, payment in lieu of annual leave of £707.09, and statutory notice pay of £5,076.94, all payable by the Secretary of State.

Practical note

When an employer company is dissolved and owes statutory payments to employees, the Secretary of State becomes liable to pay redundancy payments, unpaid wages, holiday pay, and notice pay under the insolvency provisions.

Award breakdown

Notice pay£5,077
Holiday pay£707
Redundancy pay£6,462
Unpaid wages£3,692

Legal authorities cited

Statutes

ERA 1996 s.230

Case details

Case number
3305577/2023
Decision date
9 July 2025
Hearing type
full merits
Hearing days
1
Classification
contested

Respondent

Name
Secretary of State for Business and Trade
Sector
central government
Represented
Yes
Rep type
lay rep

Claimant representation

Represented
No