Cases1808695/2023

Claimant v Rise 2 Shine Limited

4 November 2024Before Employment Judge JM WadeLeedsremote video

Outcome

Claimant succeeds£33,680

Individual claims

Unfair Dismissalsucceeded

The tribunal found the claimants were dismissed on 21 August 2023 when they were 'stood down' and locked out of systems. The reason was redundancy, but the respondent did not act reasonably in treating that reason as sufficient to dismiss in all the circumstances, including equity and the substantial merits of the case.

Redundancy Paysucceeded

The tribunal found the employer's need for employees to carry out the claimants' work had diminished, entitling them to statutory redundancy payments. The respondent failed to pay these payments, and the tribunal calculated entitlements based on complete years of service and gross weekly pay.

Wrongful Dismissalsucceeded

The respondent caused loss and damage by failing to give notice to lawfully terminate the claimants' contracts of employment. The tribunal awarded notice pay based on contractual notice periods, mitigated from the dates each claimant secured new employment.

Holiday Paysucceeded

The claimants had 21 days (4.2 weeks) of their 28-day annual entitlement remaining at termination. The respondent failed to pay for accrued but untaken holiday on termination, contrary to Regulation 14 of the Working Time Regulations 1998.

Unlawful Deduction from Wagessucceeded

The claimants received partial pay for August 2023 but had a shortfall of approximately 1.5 weeks' pay for the period up to 21 August 2023. The respondent failed to pay wages they were entitled to for work done.

Facts

Three cleaners working for a refrigeration cleaning contractor were 'stood down' by email on 21 August 2023 after their vehicles were vandalised and not replaced. They were locked out of the employer's systems and received no further communication. They had all been subject to TUPE transfers from predecessor contractors and had varying lengths of service. They were paid monthly around the 11th but received only partial pay for August 2023. All had 21 days of annual leave remaining.

Decision

The tribunal found the 'stand down' amounted to dismissal for redundancy, but the procedure was unfair. All claims succeeded: unfair dismissal, redundancy pay, notice pay (mitigated from dates of securing new employment), holiday pay for 4.2 weeks accrued entitlement, and unlawful deductions for 1.5 weeks' unpaid wages. Total awards ranged from £8,404 to £15,005 depending on length of service and weekly pay.

Practical note

A 'stand down' combined with locking employees out of systems and ceasing communication will be treated as a dismissal, and employers dismissing for redundancy must follow fair procedures even when the redundancy situation is genuine.

Award breakdown

Compensatory award£1,500
Notice pay£9,085
Holiday pay£5,530
Arrears of pay£1,975
Redundancy pay£15,590
Loss of statutory rights£1,500

Legal authorities cited

Statutes

Employment Rights Act 1996 Part IIWorking Time Regulations 1998 Regulation 14Employment Rights Act 1996 Part IXEmployment Rights Act 1996 Part XEmployment Rights Act 1996 Part XI

Case details

Case number
1808695/2023
Decision date
4 November 2024
Hearing type
full merits
Hearing days
1
Classification
contested

Respondent

Sector
other
Represented
No

Employment details

Role
Cleaning of large supermarket refrigeration

Claimant representation

Represented
No