Dismissed on the day of a TUPE transfer: automatic unfair dismissal and age discrimination
A production manager with 13 years' service was dismissed without notice on the day his employment transferred to a new company. The tribunal found automatic unfair dismissal and direct age discrimination, awarding over £130,000.
1 min read · Last updated 18 May 2026
Case details
Key facts
- The claimant was employed as a Production Manager from 1 October 2006 until dismissal on 10 December 2019.
- The claimant's employment transferred to the respondent under TUPE on 10 December 2019.
- The claimant was dismissed without notice on the same day as the TUPE transfer.
- The respondent gave a false reason for dismissal, claiming a client had gone bust.
- The respondent failed to comply with tribunal orders and conducted proceedings unreasonably.
- The claimant was aged 66 at dismissal; a younger comparator in the same role was retained.
Timeline
-
Employment started
Claimant began working for Herongrange Ltd as a Production Manager.
-
Asset Purchase Agreement
Herongrange Ltd entered into an agreement to transfer its business to the respondent.
-
Dismissal
Claimant was verbally informed of dismissal and escorted off premises; written confirmation gave false reason.
-
Appeal letter
Claimant wrote to appeal dismissal; received no reply.
-
Claim presented
Claimant filed ET1 claiming unfair dismissal, age discrimination, and unlawful deduction from wages.
-
Initial judgment
Regional Employment Judge Foxwell issued judgment that claim succeeded; remedy to be determined.
-
Reconsideration application
Claimant applied to reconsider the 2020 judgment.
-
TUPE determination
Employment Judge Tynan found a relevant TUPE transfer occurred and claimant did not object.
-
Liability judgment
Employment Judge Hutchings struck out response and found unfair dismissal and age discrimination.
-
Remedy judgment
Tribunal awarded total compensation of £130,256.56.
The legal issue
Whether the claimant was automatically unfairly dismissed because the reason for dismissal was the TUPE transfer, and whether his dismissal amounted to direct age discrimination under the Equality Act 2010.
The outcome
The tribunal upheld the claims of automatic unfair dismissal and direct age discrimination.
Key reasons:
- The respondent gave a false reason for dismissal (claiming a client had gone bust).
- The claimant was dismissed on the same day as the TUPE transfer, while a younger colleague in the same role was retained.
- The respondent failed to comply with tribunal orders and acted unreasonably throughout.
Compensation breakdown:
- Basic award: £8,088.80
- Compensatory award: £116,715.53
- Total: £130,256.56
Lessons & takeaways
- Dismissing an employee solely because of a TUPE transfer is automatically unfair, regardless of any other justification.
- Treating older workers less favourably than younger ones in a redundancy or transfer situation can amount to direct age discrimination.
- Giving a false reason for dismissal damages credibility and may lead to higher compensation, including an ACAS Code uplift.
- Employers must follow a fair process and consider alternatives before dismissing on transfer, especially when retaining other employees.
This case shows what can happen when an employer uses a TUPE transfer as an excuse to dismiss a long-serving employee without any proper process. The production manager had worked for the company for 13 years, but on the day his employment transferred to a new owner, he was told he was being let go because a client had gone bust. That reason was false, and a younger colleague in the same role was kept on.
What the tribunal found
The tribunal ruled that the dismissal was automatically unfair because the principal reason was the transfer itself, not any genuine redundancy or conduct issue. Under TUPE regulations, dismissing an employee for a reason connected to the transfer is unlawful unless there is an economic, technical or organisational reason entailing changes in the workforce. Here, there was none. The tribunal also found direct age discrimination: the claimant was 66, and the retained comparator was younger. The respondent's conduct during the proceedings — including failing to comply with orders and not attending hearings — made matters worse.
What the employer could have done differently
If the respondent had a genuine business reason for dismissing the claimant, it should have consulted with him, considered alternatives, and provided a fair process. Instead, it gave a false reason and ignored his appeal. Employers facing a TUPE transfer should seek legal advice before making any dismissals, and must ensure that any decisions are based on objective criteria unrelated to the transfer itself.
Why this matters
This case is a reminder that TUPE protections are strong. Employees who are dismissed because of a transfer can claim automatic unfair dismissal without needing two years' service. The award of over £130,000 reflects the seriousness of the unfairness and the discrimination. For anyone in a similar situation, the key takeaway is that a dismissal on the day of a transfer, especially when others are retained, is a major red flag that tribunals will scrutinise closely.
Similar cases
Cleaner dismissed on TUPE transfer day: automatic unfair dismissal
A cleaner with 12 years' service was dismissed on the day her employment transferred to a new company. The tribunal found the dismissal automatically unfair and awarded £3,025.24, including an uplift for ignoring her grievance.
Pregnant hairdresser dismissed after self-isolating: automatic unfair dismissal
A hairdresser who was dismissed after self-isolating following contact with a COVID-positive client has won her claim for automatic unfair dismissal and pregnancy discrimination. The Bristol tribunal awarded £59,632.94.
Finance manager dismissed after taking carers' leave: disability discrimination and automatic unfair dismissal
A finance manager with 13 years' service was dismissed after taking leave to care for her husband with heart failure. The tribunal found disability discrimination and automatic unfair dismissal, awarding £114,421.
Gymnastics coach dismissed after asking for contract and payslips wins automatic unfair dismissal claim
A gymnastics coach was automatically unfairly dismissed after asserting her right to a written contract and payslips. The tribunal awarded £56,202 including compensation for unlawful wage deductions.