Claimant v Sole Biz Limited (in creditors' voluntary liquidation)
Outcome
Individual claims
The tribunal found the respondent failed to provide proper notice pay. The claim was well-founded and damages for breach of contract in relation to notice pay were awarded at £2,059.20 representing 4 weeks gross pay.
The claimant was dismissed by reason of redundancy. The tribunal found she was entitled to a statutory redundancy payment and ordered the respondent to pay £3,088.80.
The tribunal found the respondent made an unauthorised deduction from wages by failing to pay for holidays accrued but not taken on termination. The respondent was ordered to pay £503.36 for accrued holiday pay.
The tribunal found the dismissal was unfair. However, no basic award was made as it was extinguished by the redundancy payment. No compensatory award was made as the claimant was receiving notice pay and employment would likely have ended anyway.
No award was made in respect of wages in the absence of information concerning the amounts claimed. The tribunal did not determine this claim due to lack of particulars.
The tribunal found the respondent failed to comply with requirements of TULR(C)A 1992 s188 regarding collective consultation. A protective award was made for 90 days beginning 5 July 2024, though not quantified at this stage.
Facts
The claimant was employed by Sole Biz Ltd until dismissal on 5 July 2024 by reason of redundancy. The respondent went into creditors' voluntary liquidation and failed to respond to the claim. The claimant was owed notice pay, redundancy pay, and holiday pay. The respondent also failed to comply with collective consultation requirements under s.188 TULR(C)A 1992.
Decision
This was a Rule 22 default judgment where the respondent, now in liquidation, did not participate. The tribunal found all claims well-founded except for unpaid wages which lacked particulars. The claimant was awarded notice pay, redundancy pay, holiday pay and a protective award for failure to consult, totaling £5,651.36 plus an unquantified protective award.
Practical note
When an employer enters insolvency without defending claims, tribunals will make default judgments on well-particularised claims, but claimants must still provide sufficient detail and calculations, particularly for wage claims and protective awards which may need further quantification.
Award breakdown
Legal authorities cited
Statutes
Case details
- Case number
- 2404686/2024
- Decision date
- 14 January 2025
- Hearing type
- rule 21
- Hearing days
- —
- Classification
- default
Respondent
- Sector
- other
- Represented
- No
Employment details
Claimant representation
- Represented
- No