Finance assistant dismissed without consultation after TUPE transfer: unfair dismissal and unpaid wages
A finance assistant was made redundant without any consultation or selection process after his employment transferred to a new company. The tribunal awarded over £11,000 for unfair and wrongful dismissal and unpaid wages.
1 min read · Last updated 18 May 2026
Case details
Key facts
- The claimant was employed as a Finance Assistant from 12 May 2017.
- The claimant was furloughed from 1 April 2020 and never returned to work.
- The First Respondent's business transferred to the Second Respondent on or around 31 May 2021 under TUPE.
- The claimant was dismissed by reason of redundancy on 30 September 2021 without any process.
- The Second Respondent failed to pay the claimant from June to September 2021.
- The claimant had four days of accrued but untaken holiday at dismissal.
Timeline
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Employment started
The claimant began working for the First Respondent as a Finance Assistant.
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Racial banter incidents
Mr Thorne referred to the claimant as a 'terrorist' on several occasions before March 2020.
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Furloughed
The claimant was placed on furlough under the Coronavirus Job Retention Scheme.
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Second Respondent incorporated
Sandy Branding Ltd was incorporated by the same directors as the First Respondent.
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TUPE transfer
The First Respondent's business transferred to the Second Respondent, and the claimant's employment transferred.
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Unpaid wages start
The Second Respondent failed to pay the claimant from June 2021 onwards.
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Dismissal
The claimant's employment was terminated by reason of redundancy without any process.
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Insolvency Service payment
The Insolvency Service paid the claimant statutory redundancy and arrears of pay.
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Third claim filed
The claimant filed a claim including harassment, discrimination, and TUPE complaints.
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Hearing
The tribunal heard the case at London South.
The legal issue
The tribunal had to decide whether the claimant's employment transferred under TUPE, whether his subsequent redundancy dismissal was fair, and whether he was owed unpaid wages and holiday pay.
The outcome
The tribunal upheld the claimant's complaints of unfair dismissal, wrongful dismissal, and unlawful deduction of wages against the Second Respondent, Sandy Branding Ltd. It also upheld a claim for unpaid wages against the First Respondent, Outstanding Branding Ltd (in liquidation).
- Unfair dismissal: compensatory award of £2,596.16 (basic award £0).
- Wrongful dismissal: £1,453.84 (statutory redundancy payment).
- Unpaid wages: £5,544 from the Second Respondent and £4,504.50 from the First Respondent.
- Holiday pay: £331.56 for accrued but untaken holiday.
Lessons & takeaways
- If your employment transfers under TUPE, your new employer inherits all rights and obligations, including the need to follow a fair redundancy process.
- A redundancy dismissal without any consultation or objective selection criteria is almost certainly unfair.
- Employers must pay employees their contractual wages and holiday pay even if the business is struggling financially.
- The failure to file a response at tribunal can lead to a default judgment, but the claimant still must prove their case on the evidence.
What this case shows in practice
This case highlights the risks for employers who treat TUPE transfers as a clean slate. The claimant, a finance assistant, was furloughed during the pandemic and never returned to work. When his original employer's business transferred to a new company, the new employer simply stopped paying him and later dismissed him by letter citing redundancy — with no consultation, no selection process, and no notice.
The tribunal found that the claimant's employment had indeed transferred under TUPE, meaning the new employer was responsible for his contractual rights. The dismissal was both unfair (no process) and wrongful (no notice). The claimant was also owed wages for the period after the transfer.
What the losing side could have done differently
The new employer, Sandy Branding Ltd, could have avoided liability by engaging in a proper redundancy process. That would have included consulting with the claimant, using fair selection criteria, and giving notice. Even if redundancy was genuinely necessary, the lack of any process made the dismissal automatically unfair. Additionally, failing to pay wages and holiday pay was a clear breach of contract.
The employer also failed to file a response to the tribunal claim, which meant the tribunal accepted the claimant's evidence as largely unchallenged.
Why the result matters for similar claims
For employees in similar situations, this case confirms that TUPE protections are real. A new employer cannot simply ignore accrued rights or dismiss without process. The award of over £11,000 reflects the losses caused by the employer's failures, though the tribunal noted that the claimant had received some payments from the Insolvency Service.
The case also serves as a reminder that employers must pay wages even during difficult times — and that a failure to do so can lead to claims for unlawful deduction from wages alongside unfair dismissal.
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