Claimant v Axiom Ince Limited (In Administration)
Outcome
Individual claims
The tribunal found that the respondent failed to comply with its duties under s.188 TULCRA. On 3 October 2023, 357 employees were dismissed with immediate effect without notice, warning, or consultation. The respondent failed to give employees the opportunity to elect representatives, failed to provide required information under s.188(4), failed to inform or consult with appropriate representatives, and failed to provide information about proposed redundancies in writing prior to dismissal. The company entered administration on 26 October 2023 and did not participate in proceedings.
Facts
Axiom Ince Limited, a law firm, dismissed approximately 357 employees with immediate effect on 3 October 2023 without notice, warning, or consultation after ceasing trading due to loss of insurance and an SRA intervention notice. The company entered administration on 26 October 2023. Employees were based across 11 locations in England and Wales, plus remote workers. The respondent failed to comply with any of its consultation obligations under s.188 TULCRA, including failing to allow election of employee representatives, provide required information, or conduct any consultation before the redundancies.
Decision
The tribunal issued a default judgment finding the respondent failed to comply with s.188 TULCRA obligations. Each of the approximately 357 claimants was awarded a protective award of 90 days' gross pay from their dismissal date. The tribunal found no basis to reduce the protective period from the statutory maximum. Awards are to be paid via the National Insurance Fund, with any shortfall ranking as unsecured claims in the administration.
Practical note
When an employer dismisses 20 or more employees as redundant at one establishment within 90 days without proper collective consultation, the tribunal will award the maximum 90-day protective award unless there are exceptional circumstances justifying a reduction.
Legal authorities cited
Statutes
Case details
- Case number
- 2200230/2024
- Decision date
- 9 July 2024
- Hearing type
- default judgment
- Hearing days
- —
- Classification
- default
Respondent
- Sector
- legal services
- Represented
- No
Claimant representation
- Represented
- No