Claimant v Cross Transport Ltd (in administration)
Outcome
Individual claims
The first respondent completely failed to comply with sections 188 and 188A TULR(C)A 1992 requiring collective consultation when proposing to dismiss 20 or more employees as redundant. There was no consultation whatsoever, no trade union or employee representatives, and no steps taken to arrange for election of representatives. The tribunal found this to be a serious breach with no mitigating circumstances.
Facts
Cross Transport Ltd, a road haulage company with 55 employees including 14 claimants, ceased trading on 2 June 2023 and entered administration on 5 June 2023. The company decided on 2 June to make all employees redundant with immediate effect but did not notify them. Administrators wrote to all employees on 8 June 2023 confirming redundancy dismissals. There was no consultation with employees, no recognised trade union, no existing employee representatives, and no steps taken to elect representatives prior to the redundancies.
Decision
The tribunal found the first respondent seriously breached its statutory duty under sections 188 and 188A TULR(C)A 1992 by completely failing to undertake collective consultation before dismissing 20 or more employees as redundant. Following Susie Radin guidance, the tribunal made a protective award of the maximum 90 days for all 14 claimants, finding no mitigating circumstances to justify any reduction despite the cessation of trading.
Practical note
Complete failure to consult when making 20+ employees redundant, even in insolvency situations, will result in maximum 90-day protective awards unless specific mitigating circumstances are demonstrated.
Legal authorities cited
Statutes
Case details
- Case number
- 1305785/2023
- Decision date
- 8 January 2025
- Hearing type
- full merits
- Hearing days
- —
- Classification
- contested
Respondent
- Sector
- transport
- Represented
- No
Employment details
- Role
- Various including lorry drivers
Claimant representation
- Represented
- No