Claimant v Toniiq Limited
Outcome
Individual claims
The tribunal found that while there was a genuine redundancy situation, the dismissal was procedurally unfair. The employer failed to consult adequately, gave no warning, provided only generic reasons, did not explore alternatives, and offered no right of appeal. The tribunal rejected the argument that consultation would have been futile, finding the failings too fundamental to excuse even for a small employer.
The tribunal found that the statutory redundancy payment had been correctly paid by the respondent. The basic award for unfair dismissal was subsumed within this payment.
The claimant alleged underpayment of approximately £500 relating to notice pay, holiday pay or other payments, but could not adequately explain the basis of the claim. The tribunal found no evidence of underpayment after comparing payslips and communications.
The claimant's case for underpayment was not made out. The respondent's witness explained all amounts had been paid correctly and the dispute appeared to relate to the claimant's misunderstanding of the tax position. The tribunal could identify no underpayment from the documentary evidence.
The claimant ticked the box for holiday pay but could not explain the basis of this claim. No evidence of underpaid holiday pay was identified by the tribunal.
Facts
The claimant was employed as Head of Customer Care for nearly five years by a small UK company that provided services to a related US entity. She was made redundant on 25 September 2024 with no prior warning, minimal consultation, no exploration of alternatives and no right of appeal. The respondent relied on genuine financial difficulties and restructuring, having sustained losses over several years. The claimant was well-regarded and had recently received a pay rise.
Decision
The tribunal found the dismissal was for a fair reason (redundancy) but procedurally unfair due to the absence of meaningful consultation, warning, consideration of alternatives and right of appeal. The tribunal rejected the argument that proper process would have been futile, finding that given the fluid relationship between the UK and US companies, consultation could have made a difference. A compensatory award of one month's net pay plus £650 for loss of statutory rights was made, reflecting the limited impact of proper process.
Practical note
Even in genuine redundancy situations with small employers facing severe financial difficulties, basic procedural fairness—warning, consultation, exploring alternatives and offering appeal—cannot be dispensed with unless an employer can show at the time of dismissal that such steps would have been truly futile.
Award breakdown
Award equivalent: 4.0 weeks' gross pay
Legal authorities cited
Statutes
Case details
- Case number
- 6019079/2024
- Decision date
- 11 May 2025
- Hearing type
- full merits
- Hearing days
- 2
- Classification
- contested
Respondent
- Name
- Toniiq Limited
- Sector
- healthcare
- Represented
- Yes
- Rep type
- barrister
Employment details
- Role
- Head of Customer Care
- Salary band
- £50,000–£60,000
- Service
- 5 years
Claimant representation
- Represented
- No