Claimant v Tolent Construction Limited (In Administration)
Outcome
Individual claims
The respondent proposed to dismiss 20 or more employees as redundant in February 2023 but failed to conduct proper warning or consultation with a recognised trade union or the claimant. No employee representatives had been elected or appointed for consultation as required under section 188A of the Trade Union and Labour Relations (Consolidation) Act 1992. The respondent entered administration on 13 February 2023 and indicated it did not intend to defend the claim, resulting in a Rule 21 judgment in the claimant's favour.
Facts
Tolent Construction Limited entered administration on 13 February 2023 and proposed to dismiss 20 or more employees as redundant from their Leeds premises. The first dismissals took effect on 13 February 2023. The respondent failed to conduct proper consultation with a recognised trade union or the affected employees, and no employee representatives had been elected or appointed for consultation purposes as required by statute. The respondent filed a response acknowledging it would not defend the claim and agreed to lifting the moratorium for the protective award claim to proceed.
Decision
The tribunal found the respondent in breach of its duty under section 188 of the Trade Union and Labour Relations (Consolidation) Act 1992 to consult before collective redundancies. Under Rule 21, the tribunal entered judgment without a hearing and awarded the maximum protective award of 90 days beginning 13 February 2023, subject to recoupment provisions.
Practical note
Employers entering administration remain liable for failure to consult on collective redundancies, and tribunals will award the maximum 90-day protective award where there is a complete failure to consult or elect employee representatives.
Legal authorities cited
Statutes
Case details
- Case number
- 2500549/2023
- Decision date
- 24 April 2024
- Hearing type
- rule 21
- Hearing days
- —
- Classification
- default
Respondent
- Sector
- construction
- Represented
- Yes
- Rep type
- in house
Claimant representation
- Represented
- No