Mr J Benbow & others (See Schedule) v Eversmart Ltd (In creditors’ voluntary liquidation) — 2020

This was a Rule 21 decision on the papers because the respondent did not present a response. Mr J Benbow and the scheduled claimants sought a protective award for breach of the collective consultation requirements. The respondent, Eversmart Ltd (in creditors’ voluntary liquidation), carried on business as an energy trader and employed over 20 employees at its Manchester establishment, with no recognised trade union for collective bargaining or consultation.

The Tribunal found that the workforce was told on 4 September 2019 that the respondent was ceasing trading because of financial difficulties, and that the company later entered creditors’ voluntary liquidation on 22 October 2019. It found there had been no proper warning or consultation with the workforce, and no employee representatives had been elected or appointed under section 188A of the Trade Union and Labour Relations (Consolidation) Act 1992 before the dismissals of the whole workforce were implemented.

The Tribunal held that these facts amounted to a breach of the respondent’s duty under section 188 of the 1992 Act and made protective awards under section 189 in favour of the claimants. The operative judgment orders remuneration for each claimant for the maximum protected period of 90 days beginning on 4 September 2019. The reasons also state that the Employment Protection (Recoupment of Jobseeker's Allowance and Income Support) Regulations 1996 apply to the awards.