Unfair dismissal after redundancy: employer in liquidation fails to defend claim
A former employee of Arnold Sanderson Limited has been awarded nearly £30,000 after the company dismissed him by reason of redundancy and failed to respond to his tribunal claim.
1 min read · Last updated 18 May 2026
Case details
Key facts
- The claimant was employed by Arnold Sanderson Limited.
- The claimant was dismissed on 23 March 2020.
- The claimant's employment did not transfer to Abbey Logistics Group Limited under TUPE.
- The respondent failed to present a response to the claim.
- The claimant was awarded a basic award of £2,372.40 and a compensatory award of £20,560.80 for unfair dismissal.
- The claimant was also awarded £3,757.15 for holiday pay, £1,677.30 for breach of contract, and £1,581.60 for failure to provide a statement of employment particulars.
Timeline
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Effective date of termination
The claimant was dismissed by Arnold Sanderson Limited.
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ACAS notification
The prospective respondent notified to ACAS was Arnold Sanderson Limited.
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Early conciliation period begins
The period beginning on 22 April 2020 was not counted for time limit purposes.
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Early conciliation period ends
The period ending on 19 May 2020 was not counted for time limit purposes.
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Preliminary hearing
Employment Judge Horne determined jurisdiction issues, including that the effective date of termination was no earlier than 23 March 2020 and that complaints against Abbey were within time.
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Final hearing
Employment Judge Phil Allen issued judgment that the claimant's employment did not transfer to Abbey, and dismissed claims against Abbey. Also issued judgment against Arnold Sanderson Limited for unfair dismissal and other claims.
The legal issue
The tribunal had to decide whether the claimant's employment transferred to Abbey Logistics Group Limited under TUPE, and whether the claimant was unfairly dismissed and entitled to various payments from Arnold Sanderson Limited.
The outcome
The tribunal ruled that the claimant's employment did not transfer to Abbey Logistics Group Limited under TUPE, so all claims against Abbey were dismissed. However, Arnold Sanderson Limited failed to file a response, leading to a default judgment.
The tribunal awarded the claimant a total of £29,949.25, comprising:
- Basic award for unfair dismissal: £2,372.40
- Compensatory award for unfair dismissal: £20,560.80
- Holiday pay: £3,757.15
- Breach of contract (notice pay): £1,677.30
- Failure to provide a statement of employment particulars: £1,581.60
Lessons & takeaways
- If you are dismissed by reason of redundancy, you may be entitled to a statutory redundancy payment or an unfair dismissal basic award, but not both.
- Employers who fail to respond to a tribunal claim risk a default judgment, which can result in significant compensation awards.
- TUPE transfers are not automatic when a business is in liquidation; the tribunal will examine whether there was a relevant transfer of an economic entity.
- Keep records of your employment particulars and holiday pay; employers who fail to provide a written statement can be penalised.
A redundancy dismissal that went undefended
This case illustrates what can happen when an employer in liquidation fails to engage with tribunal proceedings. The former employee was dismissed on 23 March 2020 by Arnold Sanderson Limited, which later entered creditors' voluntary liquidation. The employee brought claims for unfair dismissal, breach of contract, unpaid holiday pay, and failure to provide a written statement of employment particulars.
The TUPE issue
The employee also claimed that his employment should have transferred to Abbey Logistics Group Limited under TUPE. However, the tribunal found that there was no relevant transfer, so those claims were dismissed. This highlights that TUPE protection does not automatically apply when a business is in liquidation.
What the employer could have done differently
Arnold Sanderson Limited did not file a response to the claim, leading to a default judgment. Had the employer participated, it might have been able to argue that the dismissal was fair, for example by showing a genuine redundancy situation and following a fair process. By failing to respond, the employer left the tribunal with no choice but to find the dismissal unfair.
Why this matters for similar claims
This case is a reminder that employers must respond to tribunal claims, even if they are in financial difficulty. For employees, it shows that pursuing multiple related claims (unfair dismissal, breach of contract, holiday pay) can lead to a substantial total award. The total of £29,949.25 included compensation for the unfair dismissal itself, as well as separate awards for unpaid holiday pay, notice pay, and the failure to provide a written statement.
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