THE INDUSTRIAL TRIBUNALS 

CASE REFS:  1222/07
                                                                                                                               1226/07

CLAIMANTS:	William Caldwell
	Anna May Millar

RESPONDENTS:	1.  Edward Lane T/A Planet Pine
	2.  Planet Pine Ltd

DECISION

The unanimous decision of the tribunal is that:-

(i)	The claims against the first respondent are dismissed.

(ii)	The second respondent is ordered to pay to the first claimant a total of £2,692.19 in respect of his claims for a redundancy payment, notice pay, and outstanding holiday pay.

(iii)	The second respondent is ordered to pay to the second claimant a total of £3,051.58 in respect of her claims for a redundancy payment, notice pay and outstanding holiday pay.

Constitution of Tribunal:

Chairman:		Mr Travers

Members:		Mr Crawford
			Mr Irwin

Appearances:

The claimants were represented by Mr Peter Girvan, Barrister-at-Law, instructed by Stewart Ballentine of James Ballentine & Son, Solicitors.

The second respondent was not represented, Mr Edward Lane appeared in person.

REASONS

Issues

1.	The tribunal must determine:- 

(i)	The identity of the correct respondent.

(ii)	Whether or not each of the claimants is entitled to a payment in respect of redundancy, holiday pay and notice pay. 

Facts

2.	At the outset of the hearing the claimants conceded that they were employed by the second rather than the first respondent.  Mr Edward Lane directed the affairs of the second respondent but he did not employ the claimants directly.

3.	On 6th January 2007, the second respondent ceased trading with immediate effect.  The catalyst for this decision was a letter Mr Lane received from HM Revenue and Customs.  The business owed arrears of value added tax and the letter demanded immediate payment of the outstanding sum or the payment of a surety.  The letter threatened that, if payment was not advanced by the second respondent, each taxable supply made by the business on an ongoing basis would be subject to a significant financial penalty.  The letter also threatened that prosecution might follow.

4.	The second respondent could not afford to meet either the immediate financial demands of HM Revenue and Customs, or ongoing fines on each supply made by the business.  Mr Lane took legal advice and decided that there was no choice but for Planet Pine Ltd to cease trading.  Consequently both claimants were made redundant. 

5.	William Caldwell – Mr Caldwell was born on 24th February 1965.  He commenced employment with the second respondent on 19th April 1999.  His employment was terminated on 6th January 2007.  Mr Caldwell completed seven full years of employment with the second respondent.  At the date of his redundancy he was earning £187.25 per week gross, £172.68 net. In his claim form Mr Caldwell sought payment of one week’s outstanding holiday pay.  This was not substantially disputed by Mr Lane.

6.	Anna May Millar – Ms Millar commenced employment with the second respondent on 11th December 2000.  She was above the age of forty-one at the date she commenced her employment.  Her employment was terminated on 6th January 2007.  Ms Millar completed six full years of employment with the second respondent.  At the date of her redundancy she was earning £200.62 per week gross, £178 per week net.  In her claim form Ms Millar sought payment of one weeks holiday pay.  This was not substantially disputed by Mr Lane.

Law

7.	Part XII of The Employment Rights (NI) Order 1996 sets out a qualifying employee’s right to a redundancy payment. Article 197 sets out the method of calculation for a redundancy payment. Article 197(2) provides that an employee is entitled to:    

“(a)	one and a half weeks’ pay for each year of employment in which the employee was not below the age of 41.

(b)	one week’s pay for a year of employment (not within sub-paragraph (a)) in which he was not below the age of twenty-two.”

8.	Under Article 118(1)(b) of The Employment Rights (NI) Order 1996, the claimants were entitled to notice of termination of their contracts of employment of, “not less than one week’s notice for each year of continuous employment if his period of continuous employment is two years or more but less than 12 years.” 

Conclusion

9.	William Caldwell:-

In all the circumstances of the case, Mr Caldwell is entitled to the following sums.

Redundancy

7 years service x £187.25 (which is one week’s gross pay)	£1,310.75

Notice Pay

7 years service x £172.68 (which is one week’s net pay)	£1,208.76

Holiday Pay

1 week x £172.68 net	  £172.68

                                                                                          TOTAL	£2,692.19

10.	Anna May Millar:-

In all the circumstances of the case, Ms Millar is entitled to the following sums.

Redundancy

6 years service x 1.5 x £200.62 (which is one week’s gross pay)	£1,805.58

Notice Pay

6 years service x £178 (which is one week’s net pay)			£1,068.00

Holiday Pay

1 week x £178 (which is one week’s net salary)				  £178.00

                                                                                             TOTAL	£3,051.58

11.	This is a relevant decision for the purposes of the Industrial Tribunals (Interest) Order (Northern Ireland) 1990.

Chairman:

Date and place of hearing:	14 September 2007 at Belfast.

Date decision recorded in register and issued to parties: