Claimant v Crownfold Limited
Outcome
Individual claims
The respondent dismissed 27 employees as redundant on 16 June 2023 with immediate effect without any proper warning or consultation with a recognised trade union or the affected employees. No employee representatives had been elected or appointed for consultation as required under section 188A of the 1992 Act. The tribunal found the respondent in breach of section 188 of the Trade Union and Labour Relations (Consolidation) Act 1992 and awarded the maximum 90-day protective award.
Facts
On 16 June 2023, the respondent Crownfold Limited dismissed 27 employees as redundant with immediate effect, telling them the business was closing. The respondent provided no warning or consultation with either a recognised trade union or the affected employees, and no employee representatives were elected or appointed for consultation. The respondent entered voluntary liquidation on 5 July 2023. The liquidator notified the tribunal on 19 October 2023 that they did not intend to defend the claims.
Decision
The tribunal entered judgment under Rule 21 without a hearing, as the respondent had not filed a response. The tribunal found the respondent in breach of its duty under section 188 of TULRCA 1992 to consult on collective redundancies and awarded the maximum protective award of 90 days' pay to each claimant, commencing from 16 June 2023, with recoupment provisions applying.
Practical note
Employers dismissing 20 or more employees as redundant must consult with trade unions or elected employee representatives; failure to do so results in a protective award of up to 90 days' pay per affected employee.
Legal authorities cited
Statutes
Case details
- Case number
- 2502181/2023
- Decision date
- 13 February 2024
- Hearing type
- rule 21
- Hearing days
- —
- Classification
- default
Respondent
- Sector
- other
- Represented
- No
Claimant representation
- Represented
- No