Claimant v Sole Biz Limited
Outcome
Individual claims
The tribunal found the respondent made unauthorized deductions from the claimant's wages in June and July 2024. The net amount deducted was £1,140.76, which the tribunal ordered to be paid.
The tribunal found the respondent made an unauthorized deduction by failing to pay the claimant for holidays accrued but not taken when employment ended. The gross sum of £972.62 was ordered to be paid.
The claim for redundancy payment was satisfied by payments from the Insolvency Service, indicating it was well-founded but paid through the redundancy payments scheme rather than by the respondent.
The breach of contract claim was satisfied by payments from the Insolvency Service, indicating the claim was well-founded but resolved through the insolvency scheme.
The tribunal found the respondent failed to comply with section 188 of TULRCA 1992 regarding collective consultation. A protective award of 90 days beginning 5 July 2024 was made, the maximum available, indicating serious failure to consult.
Facts
The claimant was employed by Sole Biz Ltd, which entered creditors' voluntary liquidation. Employment ended on 5 July 2024. The respondent made unauthorized deductions from wages in June and July 2024 totalling £1,140.76 net, and failed to pay accrued holiday pay of £972.62 gross. The respondent also failed to comply with collective consultation requirements under s.188 TULRCA 1992 before making redundancies. Some claims (redundancy pay and breach of contract) were satisfied by the Insolvency Service.
Decision
The tribunal found all claims well-founded. It ordered payment of £1,140.76 for unauthorized wage deductions and £972.62 for holiday pay. It made a protective award of 90 days beginning 5 July 2024 for failure to consult, with recoupment provisions applying. The quantum of the protective award is to be agreed with liquidators or determined in further proceedings under s.192.
Practical note
Default judgment against insolvent respondent grants maximum 90-day protective award for complete failure to consult on collective redundancies, with detailed recoupment procedures applying given the company's insolvency.
Award breakdown
Legal authorities cited
Statutes
Case details
- Case number
- 6007051/2024
- Decision date
- 7 February 2025
- Hearing type
- default judgment
- Hearing days
- —
- Classification
- default
Respondent
- Name
- Sole Biz Limited
- Sector
- other
- Represented
- No
Claimant representation
- Represented
- No