Claimant v Rise 2 Shine Limited
Outcome
Individual claims
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.
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.
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.
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.
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
Legal authorities cited
Statutes
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