Ms H Parry v New Look Retailers Ltd — 2021

Ms Parry started work in May 2006 and went on long-term sickness absence in June 2019. She was dismissed on capability grounds in July 2020 and presented an ET1 on 27 July 2020 bringing claims that included unfair dismissal and disability discrimination. The respondent later entered a CVA approved by creditors on 15 September 2020, and the respondent accepted that Ms Parry had not been given notice of the creditors' meeting. The tribunal decided the CVA issue on agreed and documentary material and did not hear evidence.

The tribunal examined the CVA proposal, including clauses 4, 22 and 27. It held that clause 4 did not catch pre-existing unfair dismissal and discrimination claims, although clause 22 on its face compromised former employee liabilities to 2% of the assessed amount. Applying Re Britannia Heat Transfer Ltd, the judge concluded that the CVA deemed Ms Parry's claims compromised, but did not remove the tribunal's statutory jurisdiction and did not require the claim to be dismissed or struck out.

The respondent's application to dismiss the claim, or alternatively strike it out, was therefore rejected. The judge noted that if Ms Parry later succeeded in unfair dismissal she might be able to recover a basic award from the national insurance fund under the statutory insolvency provisions, while any other sums would be a matter for enforcement in the civil courts and could be affected by the CVA. The case was listed to continue with further case management and a three-day final hearing.