Keeping Kids Company (in compulsory liquidation) v 1) Miss J Smith and Others 2) Secretary of State for Business, Energy and Industrial Strategy
| Jurisdiction | UK Non-devolved |
| Judge | Judge Eady |
| Neutral Citation | UKEAT/0057/17/BA |
| Court | Employment Appeal Tribunal |
| Subject Matter | Redundancy,Redundancy - Collective consultation,information,Redundancy - Protective award,Not landmark |
| Date | 21 February 2018 |
| Published date | 21 February 2018 |
Copyright 2018
Appeal No. UKEAT/0057/17/BA
EMPLOYMENT APPEAL TRIBUNAL
FLEETBANK HOUSE, 2-6 SALISBURY SQUARE, LONDON EC4Y 8AE
At the Tribunal
On 9 January 2018
Judgment handed down on 21 February 2018
Before
HER HONOUR JUDGE EADY QC
(SITTING ALONE)
KEEPING KIDS COMPANY (IN COMPULSORY LIQUIDATION) APPELLANT
(1) MISS J SMITH AND OTHERS
(2) SECRETARY OF STATE FOR BUSINESS,
ENERGY AND INDUSTRIAL STRATEGY RESPONDENTS
Transcript of Proceedings
JUDGMENT
UKEAT/0057/17/BA
APPEARANCES
For the Appellant MS DAPHNE ROMNEY
(One of Her Majesty’s Counsel)
Instructed by:
TLT LLP
One Redcliff Street
Bristol
BS1 6TP
For Miss J Smith and Others (Respondents) MS IRIS FERBER
(of Counsel)
Instructed by:
JMW Solicitors LLP
1 Byrom Place
Spinningfields
Manchester
M3 3HG
For Ms I Akinola (Respondent) MS NATASHA JOFFE
(of Counsel)
Instructed by:
Thompsons Solicitors
Congress House
Great Russell Street
London
WC1B 3LW
For the Secretary of State for Business,
Energy and Industrial Strategy (Respondent) MS ANNA LINTNER
(of Counsel)
Government Legal Department
Employment Group
One Kemble Street
London
WC2B 4TS
Mr A Arian (Respondent) MR ADAM ARIAN
(In Person)
Mr A Zika, Ms H Bassnett, Ms E Baron
and Ms L Weinstock (Respondents)
Neither present nor represented
Ms R Lever (Respondent)
Debarred
UKEAT/0057/17/BA
SUMMARY
REDUNDANCY - Collective consultation and information
REDUNDANCY - Protective award
Redundancy - Collective consultation - special circumstances defence - protective award
Trade Union and Labour Relations (Consolidation) Act 1992 (“TULRCA”)
The Claimants had been employed by Keeping Kids Company (“KKC”) in London and Bristol.
During the course of late 2014 and for the first half of 2015, KKC had been in a financially
precarious position and, on 12 June 2015, an application was made to the government for a one-
off grant, made on the basis KKC would then secure matching funds from private donors. The
grant application included a plan for the restructuring of KKC, under which over half of the
employees would be made redundant by mid September 2015 in any event. Failing receipt of
funds from the government, the alternative was that KKC would become insolvent. On 29 July
2015, the government agreed the grant application and released funds to KKC. The next day,
however, there was publicity regarding a police investigation into safeguarding issues, which
meant KKC could not secure matching funds from private donors and had to pay back the
money to the government. Within a matter of days thereafter, KKC closed down and all
employees were dismissed by reason of redundancy. Although the restructure plans had
envisaged a process of consultation, it was common ground that there had been no compliance
with the obligations under section 188 TULRCA. The Claimants duly made claims for
protective awards.
In determining the claims, the ET unanimously held that the 12 June grant application had
contained a relevant proposal for particular categories of KKC employees. The ET minority
(the Employment Judge) did not, however, consider this extended further. The ET majority
(the Lay Members) disagreed, holding that by 12 June 2015 there was a relevant proposal
affecting all KKC employees. Furthermore, the ET majority found that the obligation to
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