Cases1802075/2023

Claimant v Tolent Construction Limited (In Administration)

Outcome

Claimant succeeds

Individual claims

Failure to Inform & Consultsucceeded

The respondent entered into administration on 13 February 2023 and proposed to dismiss 20 or more employees as redundant without proper warning or consultation with a recognised trade union or the claimants. There was no consultation with the claimants and no employee representatives had been elected or appointed for consultation within section 188A of the 1992 Act. The respondent is therefore in breach of its duty under section 188 of the Trade Union and Labour Relations (Consolidation) Act 1992.

Facts

Tolent Construction Limited entered into administration on 13 February 2023 and proposed to dismiss 20 or more employees as redundant at Colton House, Leeds. The first dismissal took effect on 13 February 2023. The respondent failed to undertake proper warning or consultation with a recognised trade union or the claimants, and no employee representatives were elected or appointed for consultation as required under section 188A of the 1992 Act.

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. The tribunal made a protective award under section 189(3) for the maximum period of 90 days beginning 13 February 2023. The respondent did not defend the claims and judgment was entered under Rule 21 without a hearing.

Practical note

Employers entering administration must still comply with collective consultation obligations under section 188 TULRCA 1992; failure to do so results in a maximum 90-day protective award.

Legal authorities cited

Statutes

Trade Union and Labour Relations (Consolidation) Act 1992 s.188Trade Union and Labour Relations (Consolidation) Act 1992 s.188ATrade Union and Labour Relations (Consolidation) Act 1992 s.189Employment Protection (Recoupment of Jobseeker's Allowance and Income Support) Regulations 1996

Case details

Case number
1802075/2023
Decision date
24 April 2024
Hearing type
rule 21
Hearing days
Classification
procedural

Respondent

Sector
construction
Represented
No

Claimant representation

Represented
No