TUPE transfer and unpaid wages: dismissal without notice on transfer day
A Data Partnerships Manager was dismissed without notice on the day his employer announced a TUPE transfer. The tribunal awarded £11,670 for breach of contract and £7,423 for failure to inform and consult.
1 min read · Last updated 19 May 2026
Case details
- #breach-of-contract
- #tupe-transfer
- #unpaid-wages
- #failure-to-inform-and-consult
- #insolvency
Key facts
- The claimant was employed as a Data Partnerships Manager from 1 January 2021 until dismissal on 15 November 2022.
- On 15 November 2022, the first respondent announced a restructure and transfer of employees and products to the second respondent.
- The claimant was dismissed on the same day as the transfer announcement, without notice or prior consultation.
- The first respondent failed to pay the claimant salary, commission, expenses, holiday pay, notice pay, and pension contributions.
- The second respondent was incorporated on 11 November 2022 and took over most of the first respondent's business and employees.
- The tribunal found that a relevant transfer under TUPE occurred and that the claimant's dismissal was due to the transfer.
Timeline
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Employment commenced
Claimant began employment with the first respondent as Data Partnerships Manager.
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Second respondent incorporated
Airnow Apps Ltd was incorporated at Companies House.
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Transfer announced and claimant dismissed
The first respondent's Group CEO sent an email announcing a restructure and transfer of employees and products to the second respondent. The claimant was dismissed with immediate effect.
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Quantuma letter to creditors
The claimant received a letter from Quantuma stating that the first respondent would enter voluntary liquidation.
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Liquidation commenced
Insolvency practitioners were appointed to liquidate the first respondent.
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Insolvency Service payments
The claimant received payments from the Insolvency Service totaling £2,239 gross.
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Case management order
Employment Judge J S Burns dismissed unfair dismissal and redundancy claims due to insufficient service, and gave directions for remaining claims.
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Substantive hearing
The tribunal heard the claimant's breach of contract and TUPE claims.
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Judgment issued
Employment Judge Shukla issued a reserved judgment finding in favor of the claimant.
The legal issue
The tribunal had to decide whether there was a relevant transfer under TUPE from the first respondent to the second respondent, and if so, whether liability for the claimant's breach of contract claim transferred to the second respondent, and whether the respondents failed to inform and consult affected employees.
The outcome
The tribunal found in favour of the claimant on both claims.
- The first respondent dismissed the claimant without notice or consultation on the same day it announced a restructure and transfer of employees to the second respondent. The second respondent was incorporated four days earlier and took over most of the first respondent's business.
- The tribunal concluded that a relevant TUPE transfer occurred and that the claimant's dismissal was due to the transfer, making the second respondent liable.
- Compensation:
- £11,670 for breach of contract (unpaid salary, commission, expenses, holiday pay, notice pay, and pension contributions)
- £7,423 for failure to inform and consult under TUPE (joint and several liability with the first respondent)
Lessons & takeaways
- If you are dismissed on the same day a TUPE transfer is announced, the dismissal is likely to be automatically unfair if the transfer is the reason.
- Liability for unpaid wages and other contractual sums can transfer to the new employer under TUPE, even if the new employer did not employ you directly.
- Employers must inform and consult affected employees before a TUPE transfer; failure to do so can result in compensation of up to 13 weeks' pay per employee.
- Insolvency of the original employer does not necessarily prevent a TUPE transfer or liability passing to the new employer.
- Even if you have less than 2 years' service, you can still bring claims for breach of contract and TUPE failures.
What this case shows in practice
This case illustrates what can happen when a company restructures and transfers its business to a new entity without following proper procedures. The claimant, a Data Partnerships Manager, was dismissed without notice or consultation on the very day his employer announced a transfer of employees and products to a newly incorporated company. He was left without pay for his final month's salary, commission, expenses, holiday pay, notice pay, and pension contributions.
The tribunal found that a relevant TUPE transfer had occurred, meaning the second respondent inherited liability for the claimant's contractual claims. The dismissal was directly linked to the transfer, making it automatically unfair under TUPE (though the claimant could not pursue unfair dismissal due to insufficient service). The tribunal also found that the respondents failed to inform or consult affected employees, triggering a separate award of compensation.
What the losing side could have done differently
The respondents could have avoided this outcome by following basic TUPE obligations. They should have informed and consulted the claimant (and other affected employees) about the transfer and its implications. They should also have ensured that the claimant's employment transferred to the second respondent on existing terms, rather than dismissing him. Even if a restructure was necessary, proper notice and consultation would have reduced or eliminated the liability.
Why the result matters for similar claims
This case is a reminder that TUPE protections apply even when the transferor is insolvent. Employees who are dismissed because of a transfer can claim against the transferee for breach of contract and failure to inform and consult, regardless of their length of service. The compensation awarded here—over £19,000 in total—reflects the seriousness of the failures. For employees facing a similar situation, it is important to gather evidence of the transfer and the dismissal, and to bring claims promptly, as TUPE claims have strict time limits.
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