Cases3315207/2022

Claimant v JD Fitness Group Limited

7 March 2024Before Employment Judge Elizabeth C OrdReadingin person

Outcome

Claimant succeeds£20,345

Individual claims

Automatic Unfair Dismissalfailed

Although Mr Bozzoni of the Second Respondent dismissed the claimant on 28 September 2022 due to the impending transfer, this dismissal was superseded by the First Respondent's email of 24 October 2022 confirming continuity of employment. The actual dismissal on 7 November 2022 by the First Respondent was for conduct, not the transfer itself.

Unfair Dismissalsucceeded

The dismissal on 7 November 2022 was for a potentially fair reason (conduct), but there was no investigation, no evidence of misconduct beyond bare assertions, and the First Respondent failed to follow any fair procedure as required by the ACAS Code. The dismissal was not within the band of reasonable responses and therefore unfair.

Wrongful Dismissalsucceeded

The claimant was entitled to seven weeks' notice but was dismissed with immediate effect. There was no good reason to justify not paying notice pay, so the breach of contract claim succeeded.

Holiday Paysucceeded

The claimant had not taken his full holiday entitlement by the date of dismissal and the respondent had no good reason to refuse payment for untaken leave. He was entitled to payment for 7 days' accrued but untaken holiday.

Unlawful Deduction from Wagessucceeded

The claimant was paid his usual salary until 8 October 2022 but was not paid for work done from 9 October to 7 November 2022 (26 days). There was no good reason to justify not paying him for this work.

Failure to Inform & Consultsucceeded

The First Respondent failed to comply with regulation 13 TUPE. Not all required details were consulted upon, the timeframe was inadequate (consultation began only two days before the transfer on 14 October 2022), and no opportunity was provided for employee representatives to be elected. The breach was serious.

Facts

The claimant worked for N&S Fitness from April 2015 as an Area Manager on £35,000 per annum. On 28 September 2022 he was given notice of termination due to insolvency, but on 14 October 2022 the business transferred to JD Fitness Group under TUPE. On 24 October 2022 JD Fitness confirmed his employment had transferred with continuity and original terms. On 7 November 2022 he was dismissed by email with immediate effect for alleged conduct issues. He was not paid for work done between 9 October and 7 November, received no notice pay, and there was inadequate TUPE consultation. Neither respondent attended the hearing.

Decision

The tribunal found the claimant was unfairly dismissed because although the reason was conduct, there was no investigation or fair procedure. His claims for notice pay, holiday pay, and unpaid wages all succeeded. The First Respondent also failed to properly inform and consult under TUPE. Awards totalling £20,344.74 were made including basic and compensatory awards, a protective award, and payments for notice, holiday, and unpaid wages.

Practical note

Employers acquiring businesses under TUPE must conduct proper consultation well in advance of transfer and cannot dismiss employees without following basic fair procedures, even when conduct concerns exist.

Award breakdown

Basic award£3,997
Compensatory award£1,665
Notice pay£1,233
Holiday pay£749
Unpaid wages£3,500
Loss of statutory rights£450

Award equivalent: 30.2 weeks' gross pay

Legal authorities cited

Statutes

ERA 1996 s.98TUPE Regulation 7Working Time Regulations 1998 Regulation 14TUPE Regulation 13TUPE Regulation 15TUPE Regulation 16

Case details

Case number
3315207/2022
Decision date
7 March 2024
Hearing type
full merits
Hearing days
2
Classification
contested

Respondent

Sector
hospitality
Represented
No

Employment details

Role
Area Manager
Salary band
£30,000–£40,000
Service
8 years

Claimant representation

Represented
No