Ms M Johnstone Mrs D Spurden v Bradford College — 2019

Ms Johnstone and Mrs Spurden were dismissed by Bradford College on 12 April 2019 after a redundancy-based restructure. They accepted that redundancy was the reason for dismissal. The tribunal found that the College was under acute financial pressure and that the restructure was intended to make it financially sustainable, with evidence that it would have become insolvent in March or April 2019 if the restructuring and associated funding had not been put in place. On that basis, the tribunal accepted that the warning given, the information provided, and the consultation process, although "far from ideal" and very compressed, were reasonable in the circumstances for the purposes of section 98(4) of the Employment Rights Act 1996.

The claims succeeded because the tribunal found that the College did not act reasonably in considering alternative employment. The claimants were effectively restricted to Phase 1 jobs in the restructure, were told they could not apply for promotion, and were not told that employees who did not secure a Phase 1 role could remain employed during their notice periods to be considered for Phase 2 roles. The tribunal found that this information had been agreed at Executive Team level but was never passed on to the claimants. It also accepted that Mrs Spurden was left with the impression that Phase 2 jobs would be at a lower grade, and that both claimants reasonably concluded there was no point applying for the new Phase 1 posts.

The tribunal held that the failure to give the claimants a reasonable opportunity to secure alternative employment was serious enough to make the dismissals for redundancy unreasonable. It recorded that both claimants had long service and that, if they had been kept on notice rather than paid in lieu, they would have remained employed into June 2019 and could have applied for Phase 2 posts. Compensation was not decided in this judgment: neither claimant sought a basic award, the College did not dispute mitigation or loss of statutory rights, and the parties had agreed weekly pay and the redundancy and PILON figures. The tribunal said pension loss and the chance of each claimant obtaining a Phase 2 role would need to be assessed if a remedy hearing was required, and listed compensation for 12 March 2020.