Claimant v GHI Contracts Ltd (In Administration)
Outcome
Individual claims
The respondent dismissed more than 20 employees as redundant within 90 days at one establishment. The respondent failed to ensure employee representatives were elected in accordance with s.188A TULR(C)A 1992 and failed to consult with them in accordance with s.188. There was no recognised trade union for collective bargaining purposes.
Facts
GHI Contracts Ltd entered administration and made 21 employees redundant at their Bellshill site on or around 27 September 2024. The company failed to arrange for the election of employee representatives as required by statute and did not conduct any collective consultation. No response was filed to the tribunal claims, though administrators gave consent for proceedings to continue.
Decision
The tribunal found the failure to inform and consult complaint well-founded under Rule 22 (default judgment). The respondent was ordered to pay a protective award for the maximum 90-day period starting from 27 September 2024, reflecting the complete absence of any consultation process.
Practical note
Employers must ensure proper election of employee representatives and conduct meaningful consultation before making collective redundancies, even when facing insolvency, or face maximum 90-day protective awards.
Legal authorities cited
Statutes
Case details
- Case number
- 4107754/2024
- Decision date
- 7 March 2025
- Hearing type
- rule 21
- Hearing days
- —
- Classification
- default
Respondent
- Sector
- construction
- Represented
- No
Claimant representation
- Represented
- No