Cases2404686/2024

Claimant v Sole Biz Limited (in creditors' voluntary liquidation)

14 January 2025Before Employment Judge Holmeson papers

Outcome

Claimant succeeds£5,651

Individual claims

Breach of Contractsucceeded

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.

Redundancy Paysucceeded

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.

Holiday Paysucceeded

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.

Unfair Dismissalsucceeded

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.

Unlawful Deduction from Wagesnot determined

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.

Failure to Inform & Consultsucceeded

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

Notice pay£2,059
Holiday pay£503
Redundancy pay£3,089

Legal authorities cited

Statutes

Trade Union and Labour Relations (Consolidation) Act 1992 s.188Trade Union and Labour Relations (Consolidation) Act 1992 s.192

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