Dismissed the day after a share transfer: no procedure, no written particulars

A sudden change of ownership, a sudden dismissal

This case shows how quickly things can go wrong when a business changes hands and the new owner fails to follow basic employment law. The employee had worked at Hazel Grove DIY Centre for over three years, working 24 hours a week over three days. On 25 January 2021, the business was sold via a share transfer to a new director, Mr Budd. The very next day, Mr Budd told the employee that his working pattern would not continue and that he was not entitled to any hours. The employee was effectively dismissed on the spot, with no notice, no consultation, and no written explanation.

What the employer could have done differently

The employer's main failing was a complete lack of procedure. Even if the new director wanted to change the employee's hours or role, he should have discussed it with the employee, given him a chance to respond, and considered alternatives. A fair process would have involved a meeting, a warning that dismissal was possible, and a right of appeal. Instead, the employee was simply told his hours were gone. The tribunal also noted that the employee had not received a written statement of employment particulars, which is a legal requirement for all employees.

Why this result matters

This case is a reminder that a change of ownership does not give an employer a free pass to dismiss staff without following a fair procedure. The fact that the business was small and the new director was inexperienced did not excuse the lack of process. The compensation awarded—£3,767—reflects the employee's lost earnings, notice pay, holiday pay, and a penalty for the missing written particulars. For employees in similar situations, the key takeaway is that an abrupt dismissal without any process is likely to be unfair, and you may be entitled to compensation even if you have only a few years' service.