Cases→2500334/2023

Claimant v Tolent Construction Limited (In Administration)

24 April 2024Before Employment Judge ArullendranNorth Easton papers

Outcome

Claimant succeeds

Individual claims

Failure to Inform & Consultsucceeded

The respondent entered administration on 13 February 2023 and proposed to dismiss 20 or more employees as redundant at their Gateshead premises. There was no proper warning or consultation undertaken with a recognised trade union or the claimants, and no employee representatives had been elected or appointed for consultation under section 188A of the 1992 Act. The respondent was therefore in breach of its duty under section 188 of TULR(C)A 1992. The tribunal awarded the maximum protective period of 90 days.

Facts

Tolent Construction Limited entered administration on 13 February 2023 and proposed to dismiss 20 or more employees as redundant from their Gateshead premises. The first dismissals took effect on 13 February 2023. The respondent provided no proper warning or consultation with a recognised trade union or the affected employees, and no employee representatives were elected or appointed for consultation purposes under section 188A of TULR(C)A 1992. The respondent filed responses stating they did not intend to defend the claims and agreed to lift the moratorium to allow the protective award claims to proceed. The Secretary of State was joined as an interested party under Rule 96.

Decision

The tribunal found the respondent's failure to comply with the consultation requirements of section 188 of TULR(C)A 1992 was well-founded. Judgment was entered without a hearing under Rule 21 as the respondent did not defend the claims. The tribunal awarded the maximum protective award of 90 days' remuneration beginning 13 February 2023 to all 34 claimants. The Employment Protection (Recoupment) Regulations 1996 apply to the awards.

Practical note

Employers entering administration who dismiss 20 or more employees as redundant without undertaking proper collective consultation face the maximum protective award of 90 days' pay per affected employee, even where they do not defend the claims.

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 Jobseekers Allowance and Income Support) Regulations 1996

Case details

Case number: 2500334/2023
Decision date: 24 April 2024
Hearing type: rule 21
Hearing days: —
Classification: default

Respondent

Name: Tolent Construction Limited (In Administration)
Sector: construction
Represented: No

Claimant representation

Represented: No

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