Cases2410928/2023

Claimant v Outstone Limited in creditors voluntary liquidation

11 February 2025Before Employment Judge M AspinallLiverpoolin person

Outcome

Claimant succeeds£13,463

Individual claims

Unfair Dismissalsucceeded

The claimant's complaint of ordinary unfair dismissal succeeded. The respondent did not attend to defend the claim and the tribunal found in favour of the claimant on the evidence presented.

Automatic Unfair Dismissalsucceeded

The claimant's complaint of automatically unfair dismissal succeeded. The tribunal accepted that the dismissal fell into one of the statutory categories of automatically unfair dismissal, likely related to the employer's failure to meet statutory obligations.

Breach of Contractsucceeded

The claimant succeeded in his breach of contract claim for notice pay. The tribunal awarded 7 weeks gross pay representing the statutory minimum notice period to which the claimant was entitled with 7 years service.

Unlawful Deduction from Wagessucceeded

The tribunal found the respondent had made unauthorised deductions in two respects: firstly, systematic underpayment below national minimum wage from August 2021 to August 2023 totalling £4,733; secondly, complete failure to pay wages for the final two weeks plus 4 days, totalling £900.

Holiday Paysucceeded

The claimant succeeded in his holiday pay claim. The tribunal found 23 days of accrued but untaken holiday were owed at termination, valuing this at £70 per day for a total award of £1,610.

Othersucceeded

The claimant's complaint that the respondent failed to provide itemised pay statements succeeded. The tribunal found this was an employment where the employer failed to make HMRC payments and failed to notify the claimant of deductions, awarding 13 weeks' aggregate unnotified deductions.

Facts

Mr Clarke was employed for 7.5 years by Outstone Limited, earning £350 gross per week. His employment terminated on 22 August 2023. The respondent systematically underpaid him below national minimum wage from August 2021 onwards and failed to pay his final wages. The respondent also failed to provide payslips or notify him of tax deductions, and did not make HMRC payments. The company entered creditors voluntary liquidation and did not attend the hearing.

Decision

The tribunal found in favour of the claimant on all claims. It awarded statutory redundancy pay of £2,450, nil basic award for unfair dismissal (offset against redundancy), compensatory award of £1,050 including loss of statutory rights, notice pay of £2,450, £4,733 for systematic underpayment, £900 for unpaid final wages, £1,610 holiday pay, and £270 for failure to provide payslips. Total award: £13,463.

Practical note

When an insolvent employer fails to attend, tribunals will scrutinise wage records carefully and can make substantial awards for systematic minimum wage violations combined with unfair dismissal and contractual claims, all of which may be recoverable from the National Insurance Fund.

Award breakdown

Compensatory award£1,050
Notice pay£2,450
Holiday pay£1,610
Arrears of pay£900
Redundancy pay£2,450
Unpaid wages£4,733
Loss of statutory rights£350

Legal authorities cited

Statutes

ERA 1996 s.122(4)Employment Tribunals (Interest) Order 1990Employment Protection (Recoupment of Benefits) Regulations 1996

Case details

Case number
2410928/2023
Decision date
11 February 2025
Hearing type
full merits
Hearing days
2
Classification
contested

Respondent

Sector
other
Represented
No

Employment details

Service
8 years

Claimant representation

Represented
No