Clarkslegal LLP - Solicitors in Reading and London

Legal Updates

It’s Good to Talk: The cost of failing to inform and consult on TUPE

26 May 2017 #Employment

In the recent Employment Tribunal case of Holden v Spice Valley Restaurants Ltd and others the employer, a restaurant, went into administration.  It subsequently reopened the restaurant at a different location but failed to transfer the Claimant, a cleaner with 12 years’ service, to the new restaurant. The Claimant was also locked out of the previous restaurant, leaving her without work.  The facts of the case paint a poor picture of the employer’s conduct in stringing the Claimant along. 

The parties accepted that TUPE applied.  The employer had made no attempt to fulfil its duties to inform and consult, providing evidence only that it had asked the Claimant to sign a document regarding a change in employer, which the Tribunal did not believe occurred in any event!  Unsurprisingly the claimant was awarded the maximum award available - 13 weeks’ gross pay.

It’s important to remember that Tribunals do have discretion to reduce this award if it’s just and equitable to do so, therefore, an employer who tries to fulfil their duties but commits a technical breach (such as minor errors in the election process) should face a lower award.  Parties should also bear in mind that these awards are joint and severable, so both the transferor and transferee are liable even if one party did nothing wrong.

Clarkslegal are running a series of podcasts on TUPE so watch out for these.

Clarkslegal, specialist Employment lawyers in London, Reading and throughout the Thames Valley.
For further information about this or any other Employment matter please contact Clarkslegal's employment team by email at by telephone 020 7539 8000 (London office), 0118 958 5321 (Reading office) or by completing the form on this page.
This information is for guidance purposes only and should not be regarded as a substitute for taking legal advice. Please refer to the full General Notices on our website.

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Louise Keenan

Louise Keenan

T: 0118 960 4614
M: 0779 900 7325


Employment team
+44 (0)118 958 5321