TUPE transfer and dismissal on the same day: a costly failure to follow procedure
A former employee who was dismissed on the same day she transferred to a new employer under TUPE has been awarded over £64,000 for unfair dismissal, unauthorised wage deductions, and breach of contract.
1 min read · Last updated 18 May 2026
Case details
Key facts
- The claimant transferred from 1st Civils Ltd to Hudson Reign Developments Ltd under TUPE on 9 November 2020.
- The claimant was unfairly dismissed by Hudson Reign Developments Ltd on 9 November 2020.
- Unauthorised deductions of £6,607 were made from the claimant's wages by 1st Civils Ltd, but liability transferred to Hudson Reign Developments Ltd.
- The second respondent failed to pay the claimant for accrued but untaken annual leave, resulting in an award of £3,884 including a 20% uplift.
- The second respondent breached the claimant's contract by dismissing her without notice or pay in lieu, awarding damages of £5,119.
Timeline
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TUPE transfer and dismissal
The claimant transferred from 1st Civils Ltd to Hudson Reign Developments Ltd under TUPE and was unfairly dismissed on the same day.
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Hearing and judgment
The Employment Tribunal heard the case and issued a judgment in favour of the claimant.
The legal issue
The tribunal had to decide whether the claimant transferred under TUPE, whether she was unfairly dismissed, whether there were unauthorised deductions from wages, and whether the respondent failed to pay for accrued annual leave.
The outcome
The tribunal found that the claimant transferred under TUPE from 1st Civils Ltd to Hudson Reign Developments Ltd on 9 November 2020 and was unfairly dismissed by the second respondent on the same day.
Key reasons: the respondent failed to follow a fair procedure, did not respond to the claim, and made unauthorised deductions. The tribunal applied a 20% uplift for unreasonable failure to follow the ACAS code.
Compensation:
- Basic award: £1,614
- Compensatory award (including 20% ACAS uplift): £47,249
- Unauthorised deductions: £6,607
- Accrued annual leave (including 20% uplift): £3,884
- Breach of contract (notice pay): £5,119
- Total: £64,473
Lessons & takeaways
- TUPE transfers do not allow a new employer to dismiss an employee without a fair process on the transfer date.
- Employers who fail to respond to tribunal claims risk having all allegations accepted and facing maximum awards.
- Unreasonable failure to follow the ACAS code can result in a 20% uplift on compensation.
- Liability for unauthorised wage deductions can transfer to the new employer under TUPE.
This case shows the risks employers take when they fail to follow proper procedure after a TUPE transfer. The claimant was dismissed on the very same day she transferred to Hudson Reign Developments Ltd, without any consultation or fair process. The tribunal found that the dismissal was unfair, and the respondent's failure to engage with the proceedings made matters worse.
What went wrong
The respondent did not attend the hearing or submit a response. This meant the tribunal accepted the claimant's evidence unchallenged. The employer also failed to pay the claimant for accrued annual leave or give notice, leading to additional awards for breach of contract. A 20% uplift was applied because the respondent unreasonably failed to follow the ACAS code of practice on disciplinary and grievance procedures.
Why this matters
For employees who transfer under TUPE, their employment terms are protected. Dismissing them without a fair reason and process on the transfer date is a clear breach. For employers, this case is a reminder that ignoring tribunal proceedings does not make the problem go away — it can lead to higher awards. The total of over £64,000 shows the potential cost of non-compliance.
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