Claimant v Readie Construction Limited (in administration)
Outcome
Individual claims
The tribunal found that the First Respondent failed to comply with the requirements of section 188 of the Trade Union and Labour Relations (Consolidation) Act 1992, which requires collective consultation before collective redundancies. The First Respondent did not establish that there were special circumstances that rendered it not reasonably practicable to comply with the consultation obligations.
Facts
Multiple claimants brought claims against their former employer, Readie Construction Limited, which entered administration. The company made collective redundancies effective from 6 February 2024. The claimants alleged that the employer failed to carry out collective consultation before making the redundancies as required by law. The employer argued that there were special circumstances that made it not reasonably practicable to comply with the consultation requirements.
Decision
The tribunal found the claims well-founded. The employer had failed to comply with section 188 of TULRCA 1992 requiring collective consultation before redundancies. The employer failed to establish the special circumstances defence. The tribunal awarded a protective award of 35 days' pay to all claimants starting from 6 February 2024, subject to recoupment provisions.
Practical note
Employers facing insolvency and administration must still attempt to comply with collective consultation obligations, and the 'special circumstances' defence is difficult to establish even when a company enters administration.
Legal authorities cited
Statutes
Case details
- Case number
- 3200879/2024
- Decision date
- 22 January 2025
- Hearing type
- full merits
- Hearing days
- 1
- Classification
- contested
Respondent
- Sector
- construction
- Represented
- Yes
- Rep type
- barrister
Claimant representation
- Represented
- Yes
- Rep type
- barrister