Claimant v Denwells Ltd
Outcome
Individual claims
The tribunal found there was a failure to inform or consult in relation to the TUPE transfer that occurred on or about 28 May 2020. No union was recognised and no representatives were elected, so the complaints of the named claimants were well founded and they were awarded 13 weeks' pay.
By virtue of the TUPE transfer, the claimants not being given notice of dismissal were entitled to be paid wages until their dismissal. The tribunal found the unlawful deductions from wages complaints well founded and awarded the gross sums as specified in the schedule.
The claimants were dismissed on the liquidation of the second respondent on 13 September 2021. Their unfair dismissal complaints were well founded and they were awarded compensation for unfair dismissal as set out in the schedule.
Miss Masefield and Mr Slater were dismissed in breach of contract without notice. They were awarded net notice pay for 12 weeks as set out in the schedule.
Facts
Multiple claimants were employees of Denwells Ltd which underwent a TUPE transfer on 28 May 2020 to Denwells 2020 Ltd. No consultation occurred regarding the transfer. The second respondent failed to consult on collective redundancies before entering liquidation on 13 September 2021, dismissing over 20 employees. Claimants were not given notice of dismissal and pursued claims for protective awards, unpaid wages, unfair dismissal compensation, and in two cases notice pay.
Decision
The tribunal found all claims succeeded. Claimants were awarded 13 weeks' pay for TUPE consultation failure and 90 days' pay for collective redundancy consultation failure. They received unpaid wages from the TUPE transfer date until dismissal, compensatory awards for unfair dismissal reflecting ongoing losses (reduced where new employment found), and two claimants received 12 weeks' notice pay. The first to third respondents did not attend.
Practical note
Employers must consult on TUPE transfers and collective redundancies even when facing insolvency; failure to do so results in protective awards, and employees retain wage entitlements until properly dismissed following a transfer.
Legal authorities cited
Statutes
Case details
- Case number
- 1309028/2020
- Decision date
- 4 June 2024
- Hearing type
- full merits
- Hearing days
- 1
- Classification
- contested
Respondent
- Name
- Denwells Ltd
- Sector
- retail
- Represented
- No
Claimant representation
- Represented
- No