Claimant v Fairwayrock Components Limited — 2024

Ms Milne worked for Fairwayrock Components Ltd from 4 May 2021 until her dismissal on 11 August 2023 as a Content Marketing Associate. The tribunal accepted that the respondent had been in cash flow difficulty from March 2023, that wages were not paid for several months, and that the claimant raised a grievance on 20 July 2023 about the non-payment of wages. The grievance response on 24 July 2023 said the business was still trying to secure investment and could not say when the outstanding wages would be paid.

The tribunal accepted that the reason for dismissal was redundancy and therefore a potentially fair reason under section 98(2)(c) of the Employment Rights Act 1996, and that the redundancy definition in section 139 was met because the respondent no longer needed staff to carry out their work. It nevertheless found the dismissal unfair because there had been no consultation at all with the claimant or her colleagues, no forewarning, and no opportunity to suggest alternatives. The tribunal found there were no special circumstances excusing that failure, so section 98(4) was not satisfied.

On remedy, the tribunal calculated a basic award of £783.23 by reference to gross weekly pay of £391.62 and two weeks' entitlement, and a compensatory award of £999.69 for lost net pay between 12 August and 3 September 2023, after which the claimant had mitigated her loss in new employment starting on 4 September 2023. It also upheld the unlawful deduction from wages claim for unpaid salary from 11 February to 11 August 2023, calculating arrears of £8,664 and deducting the £650 paid on 25 May 2023, leaving £8,014, and upheld the holiday pay claim, awarding £797.09 for 12 days of accrued untaken leave.