Mr J Benbow and others v Eversmart Ltd (In creditors’ voluntary liquidation): 2414836/2019 and others (See Schedule)
JUDGMENT
Employment Tribunals Rules of Procedure 2013, Rule 21 The respondent not having presented a response to the claims, and on the information before the Judge, The judgment of the Tribunal is that:[1]The heaing listed on 24 April 2020 is vacated.[2]The claims are all well-founded in that the respondent failed to comply with its statutory collective consultation obligations under Section 188 of the Trade Union and Labour Relations (Consolidation) Act 1992 before proposed redundancy dismissals took effect at its establishment at 20 Brindley Road, Stretford, Manchester M16 9HQ in respect of the whole workforce employed there.[3]Under Section 189(1)(d), (2), (3) and (4), the Tribunal makes a protective award in respect of the claimants named in the schedule and the respondent is ordered to pay remuneration to each claimant for a protected period of 90 days beginning on 4 September 2019.[4]The Employment Protection (Recoupment of Jobseeker’s Allowance and Income Support) Regulations 1996 apply to these awards.REASONS
[1]By a claim form presented on 23 November 2019, the claimants claimed a protective award in respect of breach of the collective consultation requirements. No response was presented to the claims by respondent.[2]On a full consideration of the file of proceedings it was possible to issue this Judgment under Rule 21 without a hearing. Code P under the case number above reflects this.[3]On the information provided, the Tribunal makes the following findings. The respondent carried on business as an energy trader and employing over 20 employees including the claimants at Manchester. There was no trade union recognised for collective bargaining, consultation or negotiation with the workforce.[4]The employees were notified on 4 September 2019 that the respondent was ceasing trading due to financial difficulties. The respondent company was formally put into creditors voluntary liquidation on 22 October 2019.[5]There was no proper warning or notice given to or consultation with the workforce. No employee representatives had been elected or appointed for any such consultation within Section 188A of the 1992 Act. The dismissals of the whole workforce were put into effect at once.[6]In these circumstances, the respondent is in breach of the duty under Section 188 of the 1992 Act and the Tribunal makes an award under Section 189 in favour of the claimant for the maximum protected period of 90 days commencing on 18 May 2018.[7]The respondent is advised of the provisions of Regulation 5 of the Employment Protection (Recoupment of Jobseeker’s Allowance and Income Support) Regulations 1996, such that, within 10 days of the decision in these proceedings being promulgated or as soon as is reasonably practicable, the first respondent must comply with the provisions of Regulation 6 of the 1996 Regulations and, in particular, must supply to the Secretary of State the following information in writing:(a) the name, address and national insurance number of every employee to whom the award relates; and(b) the date of termination of the employment of each such employee. 7. The respondent will not be required to make any payment under the protective awards made until it has received a recoupment notice from the Secretary of State or notification that the Secretary of State does not intend to serve a recoupment notice having regard to the provisions of Regulation 7(2). The Secretary of State must normally serve such recoupment notice or notification on the employer within 21 days of receipt of the required information from the first respondent.