Claimant v Vanners Silk (1740) Ltd and others — 2022

The tribunal found that there was a relevant transfer on 5 January 2021 when the business was partitioned into separate operational companies, with the Second Respondent taking the tie-making function, the Third Respondent the administrative/managerial function, and the Fourth Respondent the weaving function. It held that each claimant was assigned to the relevant part of the undertaking by reference to role and function, and that the First Respondent and the relevant transferee failed to inform and consult affected employees before the transfer. The tribunal awarded each claimant 4 weeks' gross pay under TUPE.

On wages, the tribunal found that the Respondents had made unauthorised deductions by underpaying or not paying wages from January 2021 onwards. It rejected the argument that the Respondents could withhold pay because of furlough arrangements or dissatisfaction with performance, and it declined to apply any ACAS uplift to those wages awards. It also upheld the separate claims for notice pay, holiday pay and failure to provide a written statement of changes to employment particulars, with the detailed reasons setting out the individual sums awarded.

On dismissal, the tribunal found that Mr David Sheppard and Mr Darren Underwood had been constructively dismissed because non-payment of wages was a repudiatory breach of contract, and that Mrs Laura Gore, Mr Justin Dudden and Mrs Caroline Humphreys were unfairly dismissed. It rejected the redundancy pay claims because none of the dismissals were by reason of redundancy. The tribunal applied Polkey reductions of 40% for Mrs Gore, 35% for Mrs Humphreys, 30% for Mr Dudden, 30% for Mr Underwood and 20% for Mr Sheppard, and allowed a 25% ACAS uplift for Mrs Gore and Mr Dudden; the unfair dismissal remedy itself was left to a separate hearing.