Mr M Strachan and others (see attached schedule) v Thevegankind Ltd (In Administration) — 2023

The tribunal found that the claimant group were affected employees for the purposes of the Transfer of Undertakings (Protection of Employment) Regulations 2006 after being told on 12 October 2022 that their employment had transferred to Lillie SPV Limited. There was no recognised trade union or other appropriate representative of affected employees. The respondent did not present a response, and the judgment was issued under rule 21 on the available material.

The tribunal held that, because there were no other appropriate representatives, the respondent was obliged under regulations 13(3)(b)(ii) and 14 to facilitate the election of employee representatives and to provide them with information about the transfer and consult them. It found that the respondent failed to facilitate such an election and therefore failed to inform and consult any representatives before the transfer. The judgment records that the respondent took no reasonable steps at all towards compliance and that there were no special circumstances making compliance not reasonably practicable.

The complaint that the respondent failed to comply with regulations 13 and 14 was found well founded, and the tribunal made a declaration and award under regulation 15(8). Because there had been a complete failure to comply with the consultation obligations, the tribunal held that appropriate compensation under regulation 15(8)(a) was 13 weeks' pay for each affected employee listed in the attached schedule. The tribunal also recorded that Lillie SPV Limited, as transferee, was jointly and severally liable for that award under regulation 15(9).