Mr M McNaught v Uppermost Business Gifts Ltd — 2020

Mr M McNaught brought a complaint of unfair dismissal against Uppermost Business Gifts Ltd. The Respondent did not enter a response, did not attend the hearing, and had entered creditors’ voluntary liquidation on 9 April 2020. The Tribunal converted the listed preliminary hearing to a final hearing with the Claimant’s agreement and noted there was no prejudice in doing so.

The Tribunal found that the Claimant had worked for the Respondent since October 2016 as an engraver and that, at dismissal, he was paid £382.50 gross and £312 net per week. On 19 December 2019 he was told the Respondent would cease trading on 3 January 2020 and that he would be dismissed on that date. The Tribunal found, however, that the Respondent did not cease trading until it went into liquidation on 9 April 2020 and that other employees continued working in the meantime.

Applying s.94 and s.98 ERA 1996, the Tribunal held that the Respondent had not discharged the burden of showing a potentially fair reason for dismissal. Because the Respondent filed no response, did not attend, and led no evidence, the Tribunal found the dismissal unfair.

On remedy, the Tribunal held that the statutory redundancy payment already made on dismissal was calculated on the same basis as a basic award and therefore cancelled any basic award. It awarded £350 for loss of statutory rights and £4,368 for loss of wages, calculated as 14 weeks at £312 per week from 3 January 2020 to 9 April 2020. The total award was £4,718, and the Employment Protection (Recoupment of Jobseekers’ Allowance & income Support) Regulations 1996 applied because the Claimant was in receipt of Universal Credit.