Claimant v Aspen Phoenix Newco Limited T/A Paperchase (in administration)
Outcome
Individual claims
The tribunal found the respondent dismissed 21 employees by email on 31 January 2023 without any consultation with appropriate employee representatives, without providing required information under s.188(4) TULCRA, and without giving affected employees the opportunity to elect representatives. There were 20 or more redundancies at a single establishment, triggering the duty to collectively consult, which was wholly breached.
Facts
21 claimants employed at Paperchase head office in London were dismissed by email on 31 January 2023 with immediate effect when the company entered administration. The employer failed to undertake any collective consultation, failed to provide information about proposed redundancies, and failed to give employees the opportunity to elect representatives as required under TULCRA s.188.
Decision
The tribunal issued a default judgment under Rule 21, finding the respondent failed to comply with its duties under s.188 TULCRA. All 21 claimants were awarded the maximum 90 day protective award, calculated as 90 days' gross pay from dismissal date, to be paid by the National Insurance Fund as the respondent was in administration.
Practical note
Employers facing insolvency must still comply with collective consultation obligations under s.188 TULCRA; failure to do so results in maximum 90-day protective awards payable from the National Insurance Fund where the employer is insolvent.
Legal authorities cited
Statutes
Case details
- Case number
- 2209915/2023
- Decision date
- 6 January 2025
- Hearing type
- default judgment
- Hearing days
- —
- Classification
- default
Respondent
- Sector
- retail
- Represented
- No
Claimant representation
- Represented
- No