Claimant v Secretary of State for Business and Trade

Outcome

Facts

Twelve claimants worked at Elliott House Limited, a care home that closed on 19 November 2021. Most were dismissed on 26 November 2021 after a period of uncertainty. The employer became insolvent, with a winding-up order made on 15 March 2023. The claimants applied to the Redundancy Payments Service for notice pay. They disputed the amounts paid, arguing the Secretary of State incorrectly calculated earnings from new employment, improperly deducted for benefits they could have claimed but did not, and wrongly deducted national insurance in some cases.

Decision

The tribunal found in favour of ten claimants (one claim dismissed for Humphreys). The Secretary of State had applied a blanket policy of deducting notional benefits without proper consideration of individual circumstances and had not proved that the claimants unreasonably failed to mitigate their losses by not claiming unemployment benefits. The tribunal also found errors in calculating earnings from new employment for three claimants and incorrect national insurance deductions for two claimants. Total additional payments awarded amounted to £1,660.03.

Practical note

Award breakdown

Legal authorities cited