Claimant v Atlantic Laundry Limited
Outcome
Individual claims
The tribunal found that even bearing in mind the respondent was a small employer facing immediate and significant business difficulty, there was a complete absence of any effective consultation process. The decision to dismiss the claimants summarily was not within the band of reasonable responses and was not fair and reasonable in all the circumstances.
The claimants were clearly dismissed by reason of redundancy and the statutory definition in section 139 of the Employment Rights Act 1996 was met. The respondent no longer needed supervisors after the loss of the Sykes Cottages contract which accounted for 85% of turnover.
Facts
Two supervisors, Mr and Mrs Iliev, were employed by a commercial laundry company which lost its major customer (Sykes Cottages) accounting for 85% of turnover. On 4 March 2024, they were called into the office on a non-working day and summarily dismissed for redundancy with immediate effect without any prior consultation. Both were paid notice and holiday pay but not redundancy pay. Mr Iliev found new work within two weeks, while Mrs Ilieva underwent emergency surgery in Bulgaria and found work in summer 2024.
Decision
The tribunal found the dismissals were by reason of redundancy and awarded statutory redundancy payments of £1,644.21 each. However, the dismissals were unfair due to the complete absence of consultation. The tribunal applied a Polkey reduction, limiting compensation to three weeks' net pay (£1,316.76) plus £500 for loss of statutory rights, as fair dismissals would have occurred within three weeks had proper consultation taken place.
Practical note
Even small employers facing urgent business crises must undertake some consultation before redundancy dismissals, though Polkey reductions may significantly limit compensation where fair dismissal would have occurred shortly afterwards in any event.
Award breakdown
Award equivalent: 6.3 weeks' gross pay
Legal authorities cited
Statutes
Case details
- Case number
- 1401274/2024
- Decision date
- 15 April 2025
- Hearing type
- full merits
- Hearing days
- 2
- Classification
- contested
Respondent
- Sector
- other
- Represented
- No
- Rep type
- in house
Employment details
- Role
- Supervisor
- Salary band
- £25,000–£30,000
- Service
- 3 years
Claimant representation
- Represented
- No