Claimant v Hadden Construction Limited (In Administration)
Outcome
Individual claims
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 and failed to consult with them in accordance with s.188 of the Trade Union and Labour Relations (Consolidation) Act 1992. There was no recognised trade union involved. The tribunal found the complaint well founded.
Facts
Hadden Construction Limited went into administration on 10 September 2024 with joint administrators appointed. The company dismissed 20 or more employees as redundant at their site in Aberuthven, Perthshire on that date. The respondent failed to ensure employee representatives were elected and failed to carry out collective consultation as required by statute. There was no recognised trade union. The 1st respondent did not contest the claims and the 2nd respondent did not file a response. Joint Administrators lifted the moratorium to allow the protective award claims to proceed.
Decision
The tribunal issued a Rule 22 judgment on the papers finding the failure to consult claims well founded. A protective award was made requiring the respondent to pay remuneration for a 90 day protected period beginning 10 September 2024 to all 19 claimants who were dismissed as redundant.
Practical note
Employers must ensure proper election of employee representatives and carry out collective consultation even when facing insolvency, or face maximum 90 day protective awards for affected employees.
Legal authorities cited
Statutes
Case details
- Case number
- 4107592/2024
- Decision date
- 30 January 2025
- Hearing type
- rule 21
- Hearing days
- —
- Classification
- default
Respondent
- Sector
- construction
- Represented
- No
Claimant representation
- Represented
- No