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Transfer of undertakings: Compensation for failure to consult on TUPE transfer

This report relates to 1 case(s)

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    Sweetin v Coral Racing [2006] IRLR 252 EAT (3 other reports)

    • TUPE case law update

      2 February 2007

      This article looks at some of the important judgments in the area of the transfer of undertakings over the past year.

    • Case round-up

      1 April 2006

      Joe Glavina, of Addleshaw Goddard outlines the latest legal rulings and explains what you need to do to avoid tribunals.

    • Transfer ruling encourages responsibility

      14 February 2006

      Awards of compensation for a failure to inform and consult about staff transfers under the Transfer of Undertakings (Protection of Employment) Regulations (TUPE) should be penal and not compensatory, according to the Employment Appeal Tribunal in Sweetin v Coral Racing.

In Sweetin v Coral Racing EATS/0039/05, the EAT holds that the tribunal was correct to find that the claimant was not constructively dismissed on the basis that her employer's failure to deal with her grievance expeditiously amounted to a breach of the implied term of trust and confidence. The claimant had failed to communicate effectively that she had a grievance before she resigned. However, the tribunal erred in awarding six weeks' pay for the employer's failure to consult under the Transfer of Undertakings (Protection of Employment) Regulations 1981. In the absence of any mitigating factors, and having categorised the failure to consult as "serious" and "gross", it was not open to the tribunal to award anything less than the equivalent of 13 weeks' pay.