Claimant v Saietta Group PLC (in administration)
Outcome
Individual claims
The tribunal declared that the respondent failed to comply with section 188 of the Trade Union and Labour Relations (Consolidation) Act 1992, which requires consultation before collective redundancies. A protective award of 80 days' pay was ordered by consent, commencing from the dismissal date of 4 March 2024.
Facts
Saietta Group PLC entered administration and dismissed 31 employees on 4 March 2024. The company failed to comply with statutory requirements under section 188 TULRCA 1992 to consult with employees or their representatives before making collective redundancies. The claimants brought claims for protective awards against both the insolvent company and the Secretary of State for Business and Trade.
Decision
The tribunal granted a declaration that the respondent failed to comply with section 188 collective consultation requirements and ordered a protective award of 80 days' pay by consent for all 31 claimants, beginning from their dismissal date. Any payments by the company (rather than the Secretary of State) would rank as unsecured dividends subject to preferential debts under insolvency law.
Practical note
Employers must comply with collective consultation requirements even when facing insolvency, and failure to do so results in protective awards up to 90 days' pay per affected employee, payable by the National Insurance Fund where the employer is insolvent.
Legal authorities cited
Statutes
Case details
- Case number
- 3305464/2024
- Decision date
- 3 September 2024
- Hearing type
- full merits
- Hearing days
- —
- Classification
- contested
Respondent
- Sector
- manufacturing
- Represented
- No
Claimant representation
- Represented
- No