Chef unfairly dismissed after TUPE transfer: employer failed to inform and consult
A chef was unfairly dismissed after her employment transferred to a new company under TUPE. The tribunal awarded over £12,800 for unfair dismissal, plus compensation for failure to inform and consult, unpaid holiday pay, and lost pension contributions.
1 min read · Last updated 18 May 2026
Case details
- #tupe-transfer
- #failure-to-inform-and-consult
- #unfair-dismissal
- #holiday-pay
- #breach-of-contract
- #age-discrimination-dismissed
- #costs-awarded
Key facts
- The claimant was employed as a chef at the Marlbank Inn, initially by Gold Panda Ltd.
- Her employment transferred to Pandeli Ltd under TUPE on 12 April 2021.
- She was dismissed by Pandeli Ltd on 15 June 2021.
- The tribunal found the dismissal was unfair and that Pandeli Ltd failed to inform and consult under TUPE.
- The claimant's age discrimination claim was dismissed.
- The tribunal awarded costs against Gold Panda Ltd and Pandeli Ltd for unreasonable conduct regarding strike-off applications.
Timeline
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TUPE transfer
The claimant's employment transferred from Gold Panda Ltd to Pandeli Ltd under TUPE.
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Dismissal
The claimant was dismissed by Pandeli Ltd.
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Claim presented
The claimant presented her claim to the Employment Tribunal.
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First strike-off application by R1
Gold Panda Ltd applied for voluntary strike-off, which the tribunal later found unreasonable.
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Compulsory strike-off notice for R3
A notice of compulsory strike-off for Pandeli Ltd was published in the Gazette.
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Disclosure of R3 dissolution
Pandeli Ltd disclosed its imminent dissolution to the claimant and tribunal only after evidence and submissions were complete.
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Final hearing begins
The four-day final hearing commenced.
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Oral judgment given
The tribunal gave oral judgment, finding unfair dismissal, breach of contract, unlawful deduction, and TUPE failures, but dismissing age discrimination and other claims.
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Costs hearing
The tribunal considered the claimant's costs application on the papers.
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Costs judgment
The tribunal awarded costs of £8,370.98 against Gold Panda Ltd and Pandeli Ltd.
The legal issue
The tribunal had to decide whether the chef was unfairly dismissed after her employment transferred to a new company under TUPE, and whether the employers failed to inform and consult her about the transfer, made unlawful deductions from wages, and breached her contract.
The outcome
The tribunal upheld claims of unfair dismissal, failure to inform and consult under TUPE, unlawful deduction of wages (holiday pay), and breach of contract (pension contributions). The age discrimination claim was dismissed.
Compensation awarded:
- Unfair dismissal: £12,882.43 (basic award £1,269.24, compensatory award £11,613.19)
- Failure to inform and consult under TUPE: £5,504 (13 weeks' pay)
- Unpaid holiday pay: £2,961.56
- Breach of contract (pension contributions): £1,344.79
- Costs: £8,370.98 (against both respondents jointly and severally)
Lessons & takeaways
- When a business transfers to a new owner, employees' rights are protected by TUPE – the new employer must inform and consult affected staff or face compensation.
- Dismissing an employee shortly after a TUPE transfer without a fair process or consultation is likely to be unfair, even if the transfer itself is not the reason.
- Employers must ensure they follow a fair redundancy or capability procedure, including proper consultation and consideration of alternatives, to avoid a finding of unfair dismissal.
- Employees can claim for unpaid holiday pay and lost pension contributions as part of a breach of contract claim in the employment tribunal.
- Applying to strike off a company to avoid liability can lead to a costs award against the directors personally.
What this case shows in practice
This case highlights the risks employers face when a business changes hands. The chef had worked at a pub for several years before her employment transferred to a new company under TUPE. Just two months later, she was dismissed. The tribunal found that the dismissal was unfair because the new employer did not follow a fair process – there was no proper consultation, no consideration of alternatives, and the chef was not given a chance to respond to the reasons for dismissal. The failure to inform and consult under TUPE added to the compensation.
What the losing side could have done differently
The employers could have avoided most of the claims by following basic employment law requirements. They should have informed and consulted the chef about the transfer and its impact. If a dismissal was necessary, they should have followed a fair procedure – explaining the reasons, inviting her to a meeting, considering alternatives, and allowing an appeal. They also should have paid her accrued holiday pay and made the required pension contributions. Instead, they tried to dissolve the companies, which led to a costs award for unreasonable conduct.
Why this result matters for similar claims
For employees whose jobs are transferred to a new company, this case confirms that TUPE rights are enforceable. The new employer takes on all liabilities, including the duty to inform and consult. A quick dismissal after a transfer will be scrutinised closely. The award of over £12,800 for unfair dismissal, plus separate compensation for TUPE failures and unpaid wages, shows that tribunals can award significant sums when employers cut corners. The costs award also serves as a warning against trying to avoid liability by dissolving a company.
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