Claimant v Excellent Zephyr Limited
Outcome
Individual claims
The tribunal found the claim for breach of contract in relation to notice pay was well-founded. The respondent failed to pay the full notice pay due to the claimant upon termination, only partial payment having been made by the Redundancy Payments Office.
Facts
The claimant was employed by Excellent Zephyr Limited which entered creditors voluntary liquidation. The respondent terminated the claimant's employment on 15 January 2024. The claimant's gross monthly pay was £4,166.67. The Redundancy Payments Office paid £411.35 towards notice pay, leaving a shortfall. The respondent did not attend the hearing and correspondence was received from the liquidator.
Decision
The tribunal found the claim for breach of contract in relation to notice pay well-founded. The respondent was ordered to pay £3,755.32 representing the claimant's gross monthly pay less the amount already paid by the Redundancy Payments Office. Interest at 8% per annum was awarded on any unpaid amount after 14 days.
Practical note
Where an insolvent employer fails to pay full notice pay, the tribunal will award damages for breach of contract calculated on a gross basis to reflect Post Employment Notice Pay tax treatment, after deducting amounts paid by the Redundancy Payments Office.
Award breakdown
Award equivalent: 3.9 weeks' gross pay
Legal authorities cited
Statutes
Case details
- Case number
- 3200734/2024
- Decision date
- 14 April 2025
- Hearing type
- full merits
- Hearing days
- 1
- Classification
- contested
Respondent
- Sector
- other
- Represented
- No
Employment details
- Salary band
- £50,000–£60,000
Claimant representation
- Represented
- No