TUPE transfer failure: employees awarded £25,000 after being left behind
Two employees were unfairly dismissed and awarded £25,000 in damages after their employer failed to transfer them under TUPE regulations. The tribunal also made a protective award of 90 days' pay for failure to consult.
1 min read · Last updated 19 May 2026
Case details
Key facts
- Both claimants were part of an organised resource wholly assigned to the first respondent prior to a transfer to the second respondent.
- The claimants should have been transferred to the second respondent under TUPE regulations.
- The respondents failed to inform and consult the claimants as required under TUPE Regulation 13.
- The respondents failed to comply with section 188 of TULRCA by not electing or consulting with employee representatives.
- Mr Hattee was unfairly dismissed and awarded a compensatory award of £89,493.
- Mrs Bancroft was awarded £3,664.73 for breach of contract.
Timeline
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Unauthorised deduction from wages
The first respondent made an unauthorised deduction from Mr Hattee's wages for the period 15 to 22 February 2022.
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Protective award start date
The protective award period of 90 days begins for both claimants.
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First hearing (Norwich)
Employment Judge Postle heard the case regarding TUPE transfer and determined that both claimants should have been transferred.
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Final hearing (Bury St Edmunds)
Employment Judge Hanning heard the claims for breach of contract, unauthorised deductions, unfair dismissal, and protective award.
The legal issue
The tribunal had to decide whether the claimants were part of an organised group of employees whose work was assigned to the first respondent before a business transfer, and if so, whether they were unfairly dismissed and entitled to compensation for breach of contract, unauthorised deductions, and failure to consult under TUPE and TULRCA.
The outcome
The tribunal ruled in favour of both claimants, finding that they should have been transferred to the second respondent under TUPE. Their dismissals were unfair, and the respondents failed to inform or consult them as required by law.
Compensation awarded:
- Mr Hattee: £89,493 compensatory award for unfair dismissal, plus £25,000 for breach of contract (notice pay), £2,331.29 for unauthorised deductions, and £37,500 gross for failure to inform/consult (13 weeks' pay). Also a 90-day protective award from 22 February 2022.
- Mrs Bancroft: £3,664.73 for breach of contract, £13,250 gross for failure to inform/consult (13 weeks' pay), and a 90-day protective award from 22 February 2022.
Lessons & takeaways
- If your role is part of a team that works exclusively for one part of a business before a transfer, you are likely protected by TUPE and should transfer automatically.
- Employers must inform and consult employees or their representatives before a TUPE transfer; failing to do so can lead to a protective award of up to 13 weeks' pay per employee.
- Unauthorised deductions from wages, even for a short period, can be challenged and recovered at tribunal.
- When an employer goes into liquidation or administration, employees may still pursue claims against the transferee or joint respondents.
This case highlights what can happen when employers fail to follow TUPE rules during a business transfer. Two employees who worked exclusively for Ideal Shopping Direct Ltd were left behind when the business moved to Ideal World Ltd. The tribunal found they should have automatically transferred under TUPE, and their dismissals were unfair.
What went wrong
The respondents did not inform or consult the employees about the transfer, as required by TUPE Regulation 13 and section 188 of TULRCA. They also made an unauthorised deduction from one employee's wages. The tribunal noted that the respondents did not attend the hearings or provide any evidence, so the employees' unchallenged accounts were accepted.
What this means for similar claims
For employees, this case shows that TUPE protections are strong when you are part of an 'organised grouping' of workers assigned to a particular part of the business. If your employer tries to leave you behind without proper consultation, you may have claims for unfair dismissal, breach of contract, and a protective award. The awards here were substantial, including a 90-day protective award for each employee.
Employers should note that failing to consult can be costly. Even if the business is in financial difficulty, the legal obligations under TUPE and TULRCA remain. The tribunal ordered joint liability between the transferor and transferee, meaning both companies could be pursued for compensation.
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