Cases→2501671/2024

Claimant v Surgo Construction Limited (in Administration)

25 November 2024Before Employment Judge ArullendranNorth Easton papers

Outcome

Default judgment

Individual claims

Failure to Inform & Consultsucceeded

The respondent entered administration on 14 March 2024 and proposed to dismiss 46 employees as redundant, with first dismissals on 13 March 2024. There was no proper warning or consultation undertaken with the recognised trade union UNITE before 13 March 2024, and no employee representatives had been elected or appointed. The respondent failed to file a response and the administrator consented to the claim proceeding. The tribunal found the respondent in breach of section 188 TULRCA 1992 and awarded the maximum 90-day protective award.

Facts

Surgo Construction Limited entered administration on 14 March 2024 and dismissed approximately 46 employees as redundant from its Newcastle site, with first dismissals on 13 March 2024. UNITE the Union had a recognition agreement covering unskilled, skilled and craft employees. The respondent failed to undertake any proper warning or consultation with UNITE before the dismissals, and no employee representatives were elected. The administrator did not defend the claim and consented to it proceeding.

Decision

The tribunal found the respondent in breach of section 188 TULRCA 1992 for failure to consult. Judgment was entered under Rule 21 without a hearing as the respondent failed to file a response. The tribunal awarded the maximum 90-day protective award under section 189 to all affected employees covered by the UNITE recognition agreement who were dismissed as redundant on or after 13 March 2024.

Practical note

Even in administration, employers must comply with collective redundancy consultation obligations with recognised trade unions, and failure to do so will result in the maximum 90-day protective award.

Legal authorities cited

Statutes

TULRCA 1992 s.189TULRCA 1992 s.188TULRCA 1992 s.188AEmployment Protection (Recoupment of Jobseekers Allowance and Income Support) Regulations 1996

Case details

Case number
2501671/2024
Decision date
25 November 2024
Hearing type
rule 21
Hearing days
—
Classification
default

Respondent

Name
Surgo Construction Limited (in Administration)
Sector
construction
Represented
No

Employment details

Role
unskilled, skilled and craft employees

Claimant representation

Represented
No
Rep type
union
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