Cases2600880/2023

Claimant v Moore Large & Company Limited (in administration)

12 February 2025Before Employment Judge HolbrookNottinghamon papers

Outcome

Claimant succeeds

Individual claims

Failure to Inform & Consultsucceeded

The Respondent went into administration without warning on 13 March 2023, dismissing all employees as redundant. There was no recognised trade union or existing employee representatives. The Respondent failed entirely to comply with its duties under Section 188 and 188A TULCRA 1992 to appoint employee representatives and consult about the redundancies. No consultation took place whatsoever before dismissals.

Facts

Moore Large & Company Limited employed over 20 employees at a single site in Derby. On 13 March 2023, the company went into administration without warning and dismissed all employees as redundant on the same day. There was no recognised trade union or existing employee representatives. The Respondent made no attempt to appoint employee representatives or conduct any consultation whatsoever before the dismissals. 89 individual claimants brought claims for protective awards. The Respondent did not file a defence. The Secretary of State was joined as an interested party as any awards would be paid from the National Insurance Fund.

Decision

The tribunal found the Respondent had completely failed to comply with its duties under sections 188 and 188A TULCRA 1992 to consult about collective redundancies. The tribunal made a declaration to that effect and awarded a protective award of the maximum 90 days pay to all 89 claimants for the period commencing 13 March 2023. The tribunal found no mitigating circumstances to justify any reduction from the starting point of 90 days, given the complete absence of consultation and the Respondent's failure to respond.

Practical note

Employers entering insolvency who dismiss 20+ employees without any attempt at collective consultation will face the maximum 90-day protective award with no mitigation, even where they are in administration.

Legal authorities cited

Susie Radin Ltd v GMB [2004] IRLR 400

Statutes

Trade Union and Labour Relations (Consolidation) Act 1992 s.188Employment Protection (Recoupment of Benefits) Regulations 1996Trade Union and Labour Relations (Consolidation) Act 1992 s.188ATrade Union and Labour Relations (Consolidation) Act 1992 s.189Employment Rights Act 1996 Part XII

Case details

Case number
2600880/2023
Decision date
12 February 2025
Hearing type
full merits
Hearing days
1
Classification
contested

Respondent

Sector
other
Represented
No

Claimant representation

Represented
No