Redundancy dismissals upheld as unfair after employer fails to respond

When silence speaks volumes

In this case, Drainforce Rail Ltd dismissed five employees by reason of redundancy. However, the employer did not file a response to the tribunal claims, and did not attend the hearing. As a result, the tribunal accepted the claimants' version of events and found that the dismissals were unfair. The company's failure to engage meant it could not argue that the redundancy process was fair or that the dismissals were for a potentially fair reason.

What the tribunal decided

The tribunal upheld all five claims of unfair dismissal and breach of contract for notice pay. However, the claims for a statutory redundancy payment failed because the employees did not provide sufficient evidence to establish their entitlement. The total compensation awarded was £23,911.04, covering basic awards, compensatory awards for loss of earnings and loss of statutory rights, and notice pay.

What could have been done differently

Had Drainforce Rail Ltd responded to the claims and attended the hearing, it could have argued that the redundancies were genuine and that a fair procedure was followed. The tribunal would then have considered whether the dismissals were fair in all the circumstances. By staying silent, the company lost any opportunity to defend its actions.

Why this matters

This case is a reminder that employers must take tribunal claims seriously. Failing to respond can lead to a default judgment, leaving the employer liable for compensation without having its say. For employees, it shows that even when a redundancy is genuine, the process must be fair – and that statutory redundancy payments are not automatic, even if the dismissal is found to be unfair.