Cases2601336/2023

Claimant v PH Leicester Ltd (in administration)

27 June 2025Before Employment Judge B ChapmanLeicesterin person

Outcome

Partly successful£1,498

Individual claims

Unfair Dismissalsucceeded

R1 dismissed C1 and C2 by reason of redundancy when the business closed. However, R1 failed to warn or consult with the claimants, gave no notice, and took no steps to find alternative employment. The dismissals were procedurally unfair. However, had proper procedure been followed, dismissal would have occurred anyway (100% Polkey reduction).

Redundancy Paysucceeded

C1's claim to the Redundancy Payments Service was initially rejected as out of time. The Tribunal found it just and equitable for C1 to retain his right to redundancy payment under s.164(2) ERA given the lack of timely information from the administrator and C1 being abroad. C2 had already received statutory redundancy payment from the Redundancy Payments Service.

Unlawful Deduction from Wagessucceeded

Both claimants received payslips for March and April 2023 but were never paid the wages stated on those payslips. There was no evidence the deductions were authorised. C1 awarded £534.83 gross; C2 awarded £1106.28 gross (subject to offset for payments already received from Redundancy Payments Service).

Holiday Paypartly succeeded

C1's claim failed because his April 2023 payslip showed no holiday pay due. C2's claim succeeded as his payslip showed 7 hours of holiday pay (£66.50 gross) which was never paid, and there was no evidence this deduction was authorised.

Breach of Contractfailed

Both claimants claimed unpaid mileage/expenses. However, there was no contractual term in C2's contract relating to expenses, and no contract at all for C1. The arrangement was informal. Additionally, there was no reliable evidence to quantify the claim (only estimates). Both claims for expenses failed.

Breach of Contractsucceeded

Both claimants were entitled to statutory notice under s.86 ERA (C1: 2 weeks; C2: 7 weeks). Neither was given notice or paid notice pay. There was no evidence of gross misconduct justifying summary dismissal. C1 awarded £281.78 net (including 25% uplift for failure to follow procedures); C2 awarded £907.81 net (subject to offset for payments already received from Redundancy Payments Service).

Facts

Two delivery drivers employed by a pizza franchise operator (one for 2.5 years, one for 7.5 years) were dismissed without warning when the company closed all four stores in April 2023 and later entered administration. The claimants received payslips but no wages for March and April 2023, were given no notice or consultation about redundancy, and only learned definitively of the closure when contacted by administrators in September 2023. Both had no written contracts (C1) or basic written terms (C2), and the roles were second jobs.

Decision

The Tribunal found both dismissals procedurally unfair due to complete lack of consultation, notice, or consideration of alternatives, but applied a 100% Polkey reduction as the business had closed entirely and fair dismissal was inevitable. Claims for unpaid wages and notice pay succeeded. C1 succeeded in retaining the right to a redundancy payment despite being out of time, as it was just and equitable given the lack of timely information from the administrator. C1 also awarded 4 weeks' pay for failure to provide written particulars.

Practical note

Even where an employer's insolvency makes dismissal inevitable, failure to follow any redundancy procedure at all will render dismissals unfair, though a 100% Polkey reduction will apply; tribunals will extend time for redundancy claims where administrators delay providing necessary information to dismissed employees.

Award breakdown

Basic award£227
Notice pay£282
Arrears of pay£535
Unpaid wages£535

Award equivalent: 13.2 weeks' gross pay

Adjustments

Polkey reduction100%

Had R1 followed correct statutory redundancy procedure, both claimants would have been fairly dismissed anyway as R1 had closed down its business entirely. 100% reduction applied to compensatory award.

ACAS uplift+25%

25% uplift applied to notice pay awards due to R1's failure to follow statutory procedures in dismissal process

Legal authorities cited

Williams v Compair Maxam [1982] ICR 156James W Cook and Co (Wivenhoe) Ltd v Tipper [1990] ICR 716Software 2000 Ltd v Andrews [2007] IRLR 568Delaney v Staples (t/a De Montfort Recruitment) [1991] ICR 331Capek v Lincolnshire CC [2000] ICR 878Walters t/a Rosewood v Barik UKEAT/0053/16/BAPuglia v C James and Sons [1996] IRLR 70Polkey v A E Dayton Services Ltd [1988] ICR 142

Statutes

ERA 1996 s.13ERA 1996 s.23Employment Act 2002 s.38ERA 1996 s.164Employment Tribunals Extension of Jurisdiction (England and Wales) Order 1994ERA 1996 s.86ERA 1996 s.98ERA 1996 s.139

Case details

Case number
2601336/2023
Decision date
27 June 2025
Hearing type
full merits
Hearing days
1
Classification
contested

Respondent

Sector
retail
Represented
No

Employment details

Role
Delivery driver
Salary band
Under £15,000
Service
2 years

Claimant representation

Represented
No