Claimant v BPS Solicitors Ltd (in creditors voluntary liquidation)
Outcome
Individual claims
The first respondent employed over 20 employees and made them all redundant on 22 August 2024 after the Solicitors Regulation Authority ordered it to cease trading. There was no proper warning, notice or consultation with the workforce, and no employee representatives had been elected or appointed for consultation as required under Section 188A of the 1992 Act. This was a clear breach of the collective consultation requirements under Section 188 of the Trade Union and Labour Relations (Consolidation) Act 1992.
Facts
BPS Solicitors Ltd employed over 20 employees at its Liverpool office. On 22 August 2024, the Solicitors Regulation Authority ordered the company to cease trading immediately and all employees were told to leave the premises. There was no prior warning, notice or consultation with the workforce. No employee representatives had been elected or appointed for consultation purposes. The company subsequently went into creditors voluntary liquidation. 66 claimants brought claims for protective awards for failure to conduct collective consultation.
Decision
The tribunal issued a Rule 22 judgment without a hearing as the first respondent had not presented a response. The tribunal found the failure to inform and consult under section 188 of TULR(C)A 1992 was well-founded. It ordered the maximum protective award of 90 days remuneration beginning 22 August 2024. The Employment Protection (Recoupment) Regulations 1996 apply to these awards.
Practical note
Employers making 20 or more employees redundant at one establishment must consult with employee representatives under section 188 TULR(C)A 1992, and failure to do so will result in a protective award of up to 90 days pay per affected employee, even where the business has become insolvent.
Legal authorities cited
Statutes
Case details
- Case number
- 2406926/2024
- Decision date
- 12 May 2025
- Hearing type
- rule 21
- Hearing days
- —
- Classification
- default
Respondent
- Sector
- legal services
- Represented
- No
Claimant representation
- Represented
- No