Cases4107731/2024

Claimant v Hadden Construction Limited (In Administration)

13 February 2025Before Employment Judge I McFatridgeScotlandon papers

Outcome

Claimant succeeds

Individual claims

Failure to Inform & Consultsucceeded

The respondent dismissed 20 or more employees as redundant at one establishment within 90 days but failed to ensure employee representatives were elected in accordance with s.188A TULRCA 1992 and failed to consult with them as required by s.188. There was no recognised trade union. The tribunal found the complaint well-founded and made a protective award for the maximum 90-day period.

Facts

Hadden Construction Ltd entered administration on 10 September 2024 and dismissed 20 or more employees as redundant at their Aberuthven site on the same date. The respondent failed to elect employee representatives as required and failed to conduct any collective consultation. There was no recognised trade union. Joint Administrators were appointed and lifted the moratorium to allow the claims to proceed. The claims were not contested.

Decision

The tribunal determined the claim under Rule 22 on available papers without a hearing. The complaint of failure to comply with section 188 TULRCA 1992 consultation requirements was found well-founded. The tribunal made a protective award for the maximum 90-day period beginning on the date of dismissal, 10 September 2024.

Practical note

Employers in insolvency must still comply with collective consultation obligations; failure to do so results in a protective award of up to 90 days' pay per affected employee.

Legal authorities cited

Statutes

TULRCA 1992 s.188TULRCA 1992 s.188A

Case details

Case number
4107731/2024
Decision date
13 February 2025
Hearing type
rule 21
Hearing days
Classification
default

Respondent

Sector
construction
Represented
No

Claimant representation

Represented
No