Mr T Ward v Imaginative Catering Ltd (in voluntary liquidation) and ST Events Catering Ltd: 2305160/2025
JUDGMENT
[1]The Claimant’s claims for a redundancy payment and notice pay against Imaginative Catering Limited (in voluntary liquidation) are well founded and succeed.[2]Imaginative Catering Limited (in voluntary liquidation) is ordered to pay the Claimant:a. In respect of notice pay £6,970. The Claimant may be liable to tax on this sum; andb. In respect of a redundancy payment the sum of £6,970.[3]The Claimant’s claims against ST Events Catering Limited fail and are dismissed. Approved by: Employment Judge T Perry 10 October 2025 Notes Reasons for the judgment having been given orally at the hearing, written reasons will not be provided unless a request was made by either party at the hearing or a written request is presented by either party within 14 days of the sending of this written record of the decision. If written reasons are provided they will be placed online. All judgments (apart from judgments under Rule 51) and any written reasons for the judgments are published, in full, online at https://www.gov.uk/employment-tribunal-decisions shortly after a copy has been sent to the claimants and respondents. If a Tribunal hearing has been recorded, you may request a transcript of the recording. Unless there are exceptional circumstances, you will have to pay for it. If a transcript is produced it will not include any oral judgment or reasons given at the hearing. The transcript will not be checked, approved or verified by a judge. There is more information in the joint Presidential Practice Direction on the Recording and Transcription of Hearings and accompanying Guidance, which can be found here: www.judiciary.uk/guidance-and-resources/employment-rules-and-legislation-practice-directions/ Case Number: 2305160/2025 EMPLOYMENT TRIBUNALS Claimant: Mr T Ward Respondents:(1) Imaginative Catering Limited (in voluntary liquidation)(2) ST Events Catering Limited Heard at: London South Employment Tribunal (by CVP) On: 10 October 2025 Before: Employment Judge T Perry Representation Claimant: in person Respondent 1: did not attend Respondent 2: Mr Taylor JUDGMENT having been sent to the parties on 22 October 2025 the Claimant applied on 3 December 2025 for written reasons for the judgment. Although it is out of time,REASONS
[1]At today’s hearing I heard from the Claimant and Mr Taylor, the director of the Second Respondent. Neither had prepared witness statements.[2]I was presented with limited documentation by the Claimant including:a. A schedule of loss;b. A letter from Mr Taylor dated 16 January 2025 informing the Claimant that steps were being taken to put the First Respondent into liquidation and terminating the Claimant’s employment on 16 January 2025; andc. A letter from the insolvency service dated 18 March 2025 denying a claim from the Claimant for sums owed by the national insurance fund on the basis that there was, before the insolvency date, a transfer under TUPE 2006 to the Second Respondent.The facts
[3]The Claimant started employment with the First Respondent on 6 July 2014 as a sous chef.[4]On 6 December 2024 Mr Taylor gave instructions to nominate liquidators on 6 December 2024.[5]On 19 December 2024 the Second Respondent was incorporated.[6]On 16 January 2025 the Claimant was dismissed by the letter described above. The Claimant was not paid notice or redundancy pay.[7]On 17 February 2025 resolutions to wind up the First Respondent were considered at a General Meeting. This was a creditors voluntary liquidation.[8]At the end of March 2025 the Second Respondent purchased equipment of the First Respondent from the liquidators and staff commenced employment with the Second Respondent.The Law
[9]The definition of redundancy appears at section 139 Employment Rights Act 1996: 139 Redundancy (1) For the purposes of this Act an employee who is dismissed shall be taken to be dismissed by reason of redundancy if the dismissal is wholly or mainly attributable to— (a) the fact that his employer has ceased or intends to cease— (i) to carry on the business for the purposes of which the employee was employed by him, or (ii) to carry on that business in the place where the employee was so employed, or (b) the fact that the requirements of that business— (i) for employees to carry out work of a particular kind, or (ii) for employees to carry out work of a particular kind in the place where the employee was employed by the employer, have ceased or diminished or are expected to cease or diminish.[10]. The statutory right to a redundancy payment is set out by section 135 ERA.[11]The National Insurance Fund (NIF) is a government sponsored fund which gives effect to the right to apply to the Secretary of State under section 166 of the ERA.[12]Under regulation 8(7) TUPE 2006 regulations 4 and 7 do not apply to creditors voluntary liquidations.Conclusions
[13]The Claimant was dismissed on 16 January 2025 by reason of a redundancy situation and is entitled to a redundancy payment and notice pay. This date was before relevant insolvency proceedings had commenced.[14]As no employees or assets moved between the First and Second Respondents until March 2025, there was no TUPE transfer before the start of the relevant insolvency proceedings. It follows that liability for the redundancy payment does not pass to the Second Respondent and falls to be picked up by the National Insurance Fund. Approved by: