Claimant v PH Leicester Ltd (in administration)
Outcome
Individual claims
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).
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.
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).
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.
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.
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
Award equivalent: 13.2 weeks' gross pay
Adjustments
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.
25% uplift applied to notice pay awards due to R1's failure to follow statutory procedures in dismissal process
Legal authorities cited
Statutes
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