Dismissed by text message during lockdown: a TUPE redundancy that went wrong

A redundancy handled badly

In July 2020, a graphic designer who had worked for the same employer for 15 years received a text message telling him the business was closing permanently. There was no consultation, no warning, and no discussion about alternatives. The employer later sent a formal redundancy letter, but by then the damage was done.

The tribunal found that the dismissal was procedurally unfair. The employer had made no attempt to consult or consider redeployment, which fell well below the standards expected of a reasonable employer. The fact that the employee had been laid off due to lockdown did not excuse the lack of process.

The TUPE complication

What made this case more complex was that the business was sold to a new company shortly after the dismissal. The tribunal had to decide whether the employee's employment had transferred under TUPE regulations. It concluded that a transfer of an economic entity had occurred, meaning the new employer inherited liability for the unfair dismissal. This is a reminder that TUPE can apply even when the transfer happens after dismissals, if the dismissals are connected to the transfer.

Why the age claim failed

The claimant argued that younger colleagues were kept on or rehired, suggesting age discrimination. However, the tribunal found no evidence that age was a factor in the employer's decisions. The employer's chaotic handling of the redundancy appeared to be driven by financial pressure and poor management, not age bias. The claim was dismissed.

What this means for similar cases

This case shows that even in difficult circumstances like a pandemic, employers must follow basic procedures when making staff redundant. A text message dismissal is never acceptable for a long-serving employee. It also highlights that TUPE can protect employees even when the employer tries to avoid it by dismissing before a sale.