Claimant v Kesslers International Limited (in administration)
Outcome
Individual claims
The tribunal found the First Respondent failed to comply with the requirements of Sections 188 and 188A TULRCA 1992 relating to collective consultation before making redundancies. The respondent was in administration and made no attendance to defend the claim. The tribunal found it just and equitable to award the maximum 90-day protected period given the seriousness of the breach.
Most holiday pay complaints were withdrawn by the claimants except for Mrs Dion Mattushek's claim which was stayed for three months pending further application.
All notice pay and breach of contract claims were withdrawn by the claimants as part of the multiple proceedings.
All arrears of pay claims were withdrawn by the claimants as part of the multiple proceedings.
Facts
Kesslers International Limited entered administration and made 123 employees redundant from its Stratford establishment on 17 December 2021 without conducting the collective consultation required under TULRCA 1992. The claimants brought multiple claims including failure to inform and consult, holiday pay, notice pay and arrears. The respondent company did not attend the hearing and the Secretary of State also did not participate.
Decision
The tribunal found the First Respondent failed to comply with its statutory duty to consult collectively before making redundancies. It awarded a 90-day protective period to 122 claimants (excluding Mr Tzovanos who withdrew), finding this maximum award was just and equitable given the seriousness of the breach. Other claims for notice pay and arrears were withdrawn, and most holiday pay claims withdrawn except one which was stayed.
Practical note
Employers entering administration remain under a duty to conduct collective consultation before redundancies, and failure to do so will result in the maximum 90-day protective award where the breach is serious and the employer does not engage with proceedings.
Legal authorities cited
Statutes
Case details
- Case number
- 3200976/2022
- Decision date
- 9 January 2024
- Hearing type
- full merits
- Hearing days
- 1
- Classification
- contested
Respondent
- Sector
- other
- Represented
- No
Claimant representation
- Represented
- Yes
- Rep type
- solicitor