CFO dismissed after company liquidation: notice and holiday pay awarded
A chief financial officer was dismissed by reason of redundancy when her employer entered liquidation. The tribunal awarded £9,015.92 for unpaid notice and holiday pay but dismissed claims for discrimination and unfair dismissal.
1 min read · Last updated 18 May 2026
Case details
Key facts
- The claimant was employed by the fourth respondent (Ben Ong Ltd, later 08344730 Ltd) from 1 January 2013 until 29 November 2018.
- The fourth respondent entered creditors' voluntary liquidation on 28 November 2018, and the claimant was dismissed by reason of redundancy.
- The claimant was not transferred to the fifth respondent under TUPE because the liquidation excluded the transfer.
- The claimant's claims for sex and disability discrimination were dismissed on the merits.
- The claimant was awarded £3,769.51 net for notice pay and £4,230.41 net for holiday pay.
- The fourth respondent was in breach of its duty to provide a written statement of employment particulars.
Timeline
-
Claimant started work for first respondent
The claimant began working for Leo Scheiner on a freelance basis.
-
Claimant became employee of Afterthought Ltd
The claimant was put on PAYE and became an employee of Afterthought Ltd.
-
Transfer to Ben Ong Ltd (R4)
The claimant's employment transferred from Afterthought Ltd to Ben Ong Ltd under TUPE.
-
Claimant reported health issues
The claimant began experiencing migraines and stress, and attended a health retreat.
-
Claimant suspended
The claimant was suspended pending investigation into misconduct and performance concerns.
-
Claimant signed off sick
The claimant was certified unfit for work due to anxiety and depression.
-
R4 entered liquidation
Ben Ong Ltd was placed into creditors' voluntary liquidation.
-
Claimant dismissed
The claimant was dismissed by reason of redundancy following the liquidation.
-
Claim presented
The claimant presented her claim to the employment tribunal.
-
Final judgment
The tribunal issued its reserved judgment, dismissing most claims but awarding notice and holiday pay.
The legal issue
The tribunal had to decide whether the claimant was unfairly dismissed, whether she was discriminated against on grounds of sex or disability, and whether she was entitled to notice pay, holiday pay, and other contractual sums.
The outcome
The tribunal dismissed the claimant's claims for unfair dismissal, sex discrimination, and disability discrimination on their merits. However, it found that the fourth respondent (Ben Ong Ltd, later 08344730 Ltd) was in breach of its duty to provide a written statement of employment particulars and had failed to pay the claimant her notice pay and holiday pay.
Compensation awarded:
- Notice pay: £3,769.51 net
- Holiday pay: £4,230.41 net
- Total: £9,015.92
Lessons & takeaways
- When a company enters liquidation, employees are often dismissed by reason of redundancy, which can be a fair dismissal if the process is handled correctly.
- Employers must ensure they pay all outstanding wages, notice pay, and holiday pay upon dismissal, even in a liquidation scenario.
- Claims for discrimination require evidence of less favourable treatment because of a protected characteristic; without such evidence, they are likely to fail.
- Employees should check whether a TUPE transfer applies when a business is sold out of liquidation, as this can affect who is responsible for their employment rights.
When liquidation leads to redundancy
This case shows what can happen when a company enters creditors' voluntary liquidation and employees are dismissed as a result. The claimant, a chief financial officer and chief operations officer, had worked for the business since 2003. When the company was placed into liquidation in November 2018, she was dismissed by reason of redundancy. The tribunal accepted that redundancy was the genuine reason for dismissal, which meant the dismissal was potentially fair. However, the employer failed to pay her notice pay and holiday pay, leading to a modest award.
Discrimination claims dismissed
The claimant also brought claims for sex and disability discrimination, alleging that she had been treated unfairly due to her gender and health issues. The tribunal examined the evidence and found no basis for these claims. It noted that the dismissal was driven by the liquidation, not by any discriminatory motive. This highlights the importance of having clear evidence linking treatment to a protected characteristic — without it, discrimination claims are unlikely to succeed.
What the employer could have done differently
The employer's main failing was not paying the claimant what she was owed. Even in a liquidation, employees are entitled to their notice pay and accrued holiday pay. If the company had ensured these payments were made, the tribunal claim might have been avoided entirely. The case also underscores the need for employers to provide written statements of employment particulars, as the fourth respondent was found to have breached this duty.
Key takeaways for similar claims
For employees facing redundancy due to liquidation, it is important to check whether a TUPE transfer applies if the business is sold. In this case, the tribunal found that the liquidation excluded the transfer, so the new company was not liable. Employees should also keep records of their pay and any communications about their dismissal, as these can be crucial in proving entitlement to notice and holiday pay.
Similar cases
Sex discrimination remark during stressful meeting: former employee awarded compensation
A former employee of Digital Grading Studio Limited has won her claim for sex discrimination after a remark made during a stressful meeting. She was also awarded holiday pay, notice pay, and compensation for unfair dismissal, totalling £2,989.36.
MOT tester dismissed to clear way for business sale: automatically unfair under TUPE
An MOT tester with eight years' service was dismissed to facilitate a business transfer, making the dismissal automatically unfair. The tribunal awarded £6,837 in compensation, reduced by 10% for contributory conduct.
Site closure without process: redundancy dismissal ruled unfair
A former employee with three years' service was unfairly dismissed after his site closed and the employer failed to follow any redundancy process. The tribunal awarded over £44,000 in compensation.
Kitchen manager dismissed without consultation in redundancy: unfair dismissal
A kitchen manager with two years' service was unfairly dismissed when her employer made her redundant without any consultation or warning. The tribunal awarded £4,809.49 in compensation.