Case 3313571/2023 · Employment Tribunal
Case 3313571/2023 · Employment Tribunal
Mr K Zaman, Counsel For the Respondent 1: No attendance (not notified of the hearing) For the Respondent 2: No attendance JUDGMENT 1. The claimant’s various claims are adjourned to be heard on 7 November 2024 before a judge alone via CVP. REASONS 1. The claimant was employed by the first respondent as a Senior Digital Designer from 8 May 2017 to 6 July 2023 when she was dismissed. That dismissal took place in the context of the first respondent being about to enter into a Creditors’ Voluntary Liquidation. The claimant was employed by the second respondent as a Studio Lead and Senior Designer from 21 August 2023. There appears to be some connection between the first and second respondents in that at least one senior employee and director of the first respondent is also a senior employee and director of the second respondent. 2. On 30 November 2023 the claimant commenced the present claim against both respondents. Her primary case is that there was a relevant transfer of an economic entity between eh first and second respondents with the effect that (pursuant to the Transfer of Undertakings (Protection of Employment) Regulations 2006) the claimant’s employment and various associated rights and liabilities transferred to the second respondent. Case Number: 3313571/2023 2 3. The claimant makes claims for a basic award for automatic unfair dismissal, a declaration and financial compensation consequent upon a failure to provide appropriate information, wages between 6 July and 21 August and some outstanding holiday pay. 4. It is the claimant’s contention that if there was no transfer then she is entitled to those sums from the first respondent and, given that it is in the process of voluntary liquidation, that those sums should be paid by the Insolvency Service. A request to the Insolvency Service was made, but the claim was rejected on the basis that the Insolvency Service considered that there had been a relevant TUPE transfer. 5. When I saw the tribunal file it became clear to me that the first respondent had not been served with a notification of this hearing. Furthermore, I had reservations as to whether the second respondent had been properly served, given that whilst the notification was sent to its registered address, it was addressed to a firm of accountants (Adams Moore Ltd) who status in respect of these proceedings is unclear to me. It appears that they had been advising the directors of the first respondent prior to the liquidation commencing and there is some suggestion that they may have continue dot advise those directors, possibly also in their capacities as directors of the second respondent. However, there is nothing on the tribunal file to indicate that that is the case, albeit that the claimant’s solicitors were able to tell me of a conversation with the representative of the employment tribunal who had indicated to them that they believed that that firm was advising both the first and second respondents. No note or record of any such conversation appears on the tribunal file. 6. Given that no notice had been served by the tribunal on the first respondent, whether by sending it to the liquidators (as ought to have been done) or otherwise, I could not give any judgment against that entity. I was also concerned that the second respondent might say that it had not properly been notified of this hearing. 7. In these circumstances Mr Zaman took instructions and applied to have this matter adjourned so that proper service could be effected. I note that neither respondent has submitted an ET3, but both are entitled to notification of this hearing and to take such part in it as I, as the Judge, might allow (see
The hearing on 16 September 2024 did not determine liability. Employment Judge Andrew Clarke KC recorded that the first respondent, The Creation Agency Ltd (in involuntary liquidation), had not been served with notice of the hearing, and that there were also concerns about whether the second respondent, Cleo Marketing Ltd, had been properly notified. Because the first respondent had not been served, the tribunal said it could not give any judgment against that entity at that stage.
The claimant's case was that there had been a relevant transfer of an economic entity from the first respondent to the second respondent, so that her employment and associated rights and liabilities transferred under TUPE. She also pursued claims described in the judgment as a basic award for automatic unfair dismissal, compensation following an alleged failure to provide appropriate information, wages between 6 July and 21 August, and outstanding holiday pay. The tribunal did not resolve those issues at this hearing.
Instead, Mr Zaman applied for an adjournment so that proper service could be effected. The tribunal relisted the matter for 7 November 2024 before a judge alone via CVP, and directed that notice of that hearing be sent to the first respondent's liquidators, to the second respondent at its registered address, and in an abundance of caution to Mr Martin Crook of Adams Moore Ltd.
The tribunal also directed the claimant to file a further witness statement by close of business on 31 October 2024. The matters identified for that statement were the first respondent's employee numbers immediately before liquidation, any discussions about possible liquidation and the claimant and others obtaining employment with the second respondent, and what, if anything, transferred between the respondents, including employees, contracts, customers, or equipment. The judgment states that the resumed hearing would address liability and quantification of the claimant's various claims against both respondents.
| Claim type | Issue or finding | Outcome | Protected characteristic | Award |
|---|---|---|---|---|
| Unfair dismissal | The judgment did not determine liability or remedy for this claim; it adjourned the case to a resumed hearing on 7 November 2024. | Other | — | — |
| Transfer of undertakings (TUPE) | The claimant's TUPE case was stated as the primary basis of the claim, but the tribunal made no substantive finding on whether a relevant transfer occurred. | Other | — | — |
| Unlawful deduction from wages | The judgment did not decide the claim for wages between 6 July and 21 August; it was adjourned for later hearing. | Other | — | — |
| Holiday pay | The judgment did not decide the claim for outstanding holiday pay; it was adjourned for later hearing. | Other | — | — |
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