Claimant v Surgo Construction Limited
Outcome
Individual claims
The respondent failed to comply with section 188 of the Trade Union and Labour Relations (Consolidation) Act 1992 by not providing proper warning or consultation with the recognised trade union or the claimant before dismissing 46 employees as redundant. No employee representatives had been elected or appointed for consultation as required under section 188A.
Facts
Surgo Construction Limited entered administration on 14 March 2024 and dismissed approximately 46 employees as redundant, with the first dismissal taking effect on 13 March 2024. The respondent failed to provide proper warning or consultation with the recognised trade union or affected employees before the dismissals. The claimant brought a claim for a protective award, and the administrator indicated they would not defend the claim.
Decision
The tribunal found the respondent in breach of its duty under section 188 of TULRCA 1992 to consult before collective redundancies. The tribunal awarded the maximum protective award of 90 days remuneration beginning 13 March 2024. The judgment was entered under Rule 21 without a hearing as the respondent failed to file a response.
Practical note
Employers must comply with collective consultation requirements under TULRCA 1992 even when facing insolvency, or face the maximum 90-day protective award for affected employees.
Legal authorities cited
Statutes
Case details
- Case number
- 2501234/2024
- Decision date
- 4 March 2025
- Hearing type
- rule 21
- Hearing days
- —
- Classification
- default
Respondent
- Sector
- construction
- Represented
- No
Claimant representation
- Represented
- No