Claimant v Tolent Construction Limited
Outcome
Individual claims
The respondent entered administration on 13 February 2023 and proposed to dismiss 20 or more employees as redundant without proper consultation with a recognised trade union or employees, and without electing or appointing employee representatives as required under section 188A of the Trade Union and Labour Relations (Consolidation) Act 1992. The tribunal found this to be a clear breach of section 188 obligations and awarded the maximum protective award of 90 days.
Facts
Tolent Construction Limited entered administration on 13 February 2023 and proposed to dismiss 20 or more employees as redundant from its Stockton on Tees site, with the first dismissal taking effect on 13 February 2023. The company failed to undertake any proper consultation with a recognised trade union or the affected employees, and no employee representatives were elected or appointed as required under section 188A of the Trade Union and Labour Relations (Consolidation) Act 1992. The administrator filed responses indicating they would not defend the claims and agreed to lift the moratorium to allow the protective award claims 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 inform and consult before collective redundancies. The tribunal entered judgment under Rule 21 without a hearing, awarding the claimants the maximum protective award of 90 days' remuneration commencing 13 February 2023, with recoupment provisions applying.
Practical note
Employers must comply with consultation obligations under section 188 of TULR(C)A 1992 even when entering administration, and failure to do so will result in the maximum protective award of 90 days being granted.
Legal authorities cited
Statutes
Case details
- Case number
- 2500365/2023
- Decision date
- 24 April 2024
- Hearing type
- rule 21
- Hearing days
- —
- Classification
- procedural
Respondent
- Sector
- construction
- Represented
- No
Claimant representation
- Represented
- No