21 employees dismissed without notice after employer lost funding: protective awards and unpaid wages
A tribunal awarded protective awards, redundancy pay, and unpaid wages to 21 former employees of PARC (Essex) Limited after the company ceased operations without any consultation or notice.
1 min read · Last updated 18 May 2026
Case details
Key facts
- The respondent ceased operations on 16 June 2022 due to loss of funding.
- All 21 claimants were dismissed without notice or consultation.
- The respondent accepted liability for all claims and did not challenge amounts.
- The tribunal initially made errors in calculating protective awards and later corrected them on reconsideration.
- One claimant (Jessica Howett) was initially denied unfair dismissal and redundancy due to service length but later awarded after contract showed earlier start date.
Timeline
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Respondent ceases operations
PARC (Essex) Limited ceased operations due to funding issues, dismissing all employees without notice or pay.
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First claim forms presented
Claimants began presenting claims to the tribunal between 23 June 2022 and 29 July 2023.
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Preliminary hearing
At a preliminary hearing, the respondent indicated it was preparing for voluntary liquidation.
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First remedy hearing
The tribunal heard the case; respondent accepted liability and did not challenge amounts.
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Second remedy hearing
The tribunal reconvened to decide on remedy.
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Third remedy hearing
The tribunal reconvened again to finalize remedy.
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Original judgment issued
The tribunal issued its reserved judgment with awards for each claimant.
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Reconsideration request
Ms Stewart requested reconsideration of protective awards for herself and Ms Dodge, and of Ms Howett's unfair dismissal and redundancy awards.
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Reconsideration hearing
The tribunal reconsidered and varied protective awards for all claimants and corrected Ms Howett's awards.
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Reconsideration judgment issued
The tribunal issued the reconsideration judgment with revised totals.
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Correction notice issued
A correction was made to the name 'Lesley Whitfield' to 'Lindsey Whitfield'.
The legal issue
The tribunal had to determine whether the claimants were unfairly dismissed and entitled to redundancy payments, protective awards for failure to consult, unpaid wages, holiday pay, notice pay, and other related claims after the respondent ceased operations without notice.
The outcome
The tribunal ruled in favour of all 21 claimants. The respondent accepted liability for all claims and did not challenge the amounts.
Key awards included:
- Unfair dismissal compensation (basic and compensatory awards)
- Redundancy payments
- Protective awards for failure to consult (90-day protected period)
- Unpaid wages, holiday pay, and notice pay
- Maternity pay for one claimant
The tribunal initially made errors in calculating protective awards but corrected them on reconsideration. One claimant (Jessica Howett) was initially denied unfair dismissal and redundancy due to service length but later awarded after a contract showed an earlier start date.
Lessons & takeaways
- Employers who cease operations must still follow redundancy consultation procedures or face protective awards of up to 90 days' pay per employee.
- Claimants should carefully check their employment start dates and contracts, as errors can affect entitlement to unfair dismissal and redundancy pay.
- Tribunals can correct errors in their own judgments on reconsideration, so claimants should review awards carefully and request corrections if needed.
- Even when an employer accepts liability, claimants must still provide evidence of their losses to secure the correct compensation.
When a business closes without warning
In June 2022, PARC (Essex) Limited told its 21 employees that funding had been lost and operations would cease immediately. No notice was given, no consultation took place, and staff were left without wages, holiday pay, or redundancy payments. The employer initially argued that the employees had chosen to leave, but later accepted that they had been made redundant.
What the employer could have done differently
Even when a business is forced to close suddenly, employment law requires a minimum level of process. The employer could have given notice of dismissal, consulted with staff or their representatives about the redundancy, and paid outstanding wages and holiday pay. Failing to do so led to claims for unfair dismissal, protective awards, and unpaid sums.
Why this case matters
This case shows that tribunals will hold employers accountable even when they have ceased trading. The protective award for failure to consult can be substantial – here, the tribunal awarded 90 days' pay for each affected employee. The case also highlights the importance of accurate records: one claimant was initially denied unfair dismissal and redundancy pay because the employer's records showed less than two years' service, but a correct contract later proved she had started earlier.
The respondent did not contest liability or the amounts claimed, which streamlined the process. However, the tribunal still had to calculate individual awards based on each claimant's service, age, and earnings. The judgment was later corrected to fix errors in the protective award calculations and to include the claimant whose service had been miscalculated.
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