Claimant v Everest 2020 Limited (In Administration)
Outcome
Individual claims
The respondent failed to comply with section 188 TULRCA 1992 which requires consultation with employee representatives before collective redundancies. 20 or more employees were made redundant within 90 days at the same establishment without any consultation having taken place and without a recognised trade union or elected employee representatives. The tribunal awarded the maximum 90-day protective period as there were no circumstances making it just to award less.
Facts
199 employees at Everest 2020 Limited's Welwyn Garden City establishment were made redundant between 29 April 2024 and 7 June 2024. The employer, which is now in administration, failed to consult with employee representatives before making the redundancies, despite 20 or more employees being dismissed within a 90-day period. There was no recognised trade union or elected employee representatives at the establishment. Neither respondent filed a response, though the administrators consented to the claims proceeding.
Decision
The tribunal found that the respondent had failed to comply with its duty under section 188 TULRCA 1992 to inform and consult employee representatives before collective redundancies. The tribunal awarded a protective award for the maximum period of 90 days, applying the principle that such awards are punitive and should be for the maximum period unless there are circumstances making it just to award less.
Practical note
Employers in administration who fail to comply with collective consultation requirements will still face the maximum 90-day protective award unless there are exceptional circumstances justifying a reduction.
Legal authorities cited
Statutes
Case details
- Case number
- 3306718/2024
- Decision date
- 18 March 2025
- Hearing type
- on papers
- Hearing days
- —
- Classification
- procedural
Respondent
- Sector
- construction
- Represented
- No
Claimant representation
- Represented
- No