Claimant v Jones Lighting Limited
Outcome
Individual claims
The respondent conceded unfair dismissal at the outset of the hearing. The tribunal accepted that the respondent dismissed the claimants on 31 December 2020 in the belief that a TUPE transfer was occurring to Altitude, but after a previous preliminary hearing it had been determined that no TUPE transfer took place. The respondent accepted the dismissals were procedurally unfair. The tribunal assessed remedy accordingly, including Polkey reductions for some claimants.
The first four claimants (Duffy, Priestner, Ashton, Astle) succeeded in wrongful dismissal claims. They were dismissed without notice or payment in lieu of notice. The tribunal awarded them notice pay equivalent to their statutory notice periods under s.86 ERA, calculated on a net basis following Norton Tool principles. Their entitlement to notice pay was assessed separately but not awarded twice where it overlapped with the compensatory award.
Facts
Six claimants worked for Jones Lighting Limited, a street lighting maintenance contractor. The respondent lost the AGMA contract following retendering. Believing a TUPE transfer applied, the respondent told the claimants they would transfer to the new contractor, Altitude, on 1 January 2021. When the claimants attended Altitude on 4 January 2021 they were turned away. A previous tribunal determined no TUPE transfer occurred. The claimants' employment with Jones ended on 31 December 2020. All claimants settled separate claims against Altitude via COT3 agreements for varying sums.
Decision
The tribunal found all claimants were unfairly dismissed (conceded by respondent) and awarded basic awards and compensatory awards. The first four claimants also succeeded in wrongful dismissal claims. A 30% Polkey reduction was applied to three claimants identified as most likely to face redundancy. Settlement sums from Altitude were deducted from compensatory awards under Optimum Group Services principles, but not from basic awards. Total awards ranged from £328 (Astle) to £14,980.29 (Ashton), with some compensatory awards entirely extinguished by Altitude settlements.
Practical note
Settlement payments from third parties must be deducted from compensatory awards to avoid double recovery, but cannot be set off against basic awards unless expressly agreed to cover that liability, regardless of the respondent's wish to avoid 'overpayment'.
Award breakdown
Adjustments
30% chance that Mr Duffy, Mr Ashton and Mr Astle would have been fairly dismissed for redundancy in any event after 1 month, following loss of AGMA contract which represented 30% of respondent's turnover
Legal authorities cited
Statutes
Case details
- Case number
- 2402953/2021
- Decision date
- 19 February 2024
- Hearing type
- remedy
- Hearing days
- 5
- Classification
- contested
Respondent
- Sector
- construction
- Represented
- Yes
- Rep type
- barrister
Employment details
- Role
- Various roles: LV Jointer, cable jointer, electrician, apprentice electrician, Street Lighting Manager/Health & Safety Manager
Claimant representation
- Represented
- Yes
- Rep type
- barrister