Employment
Employees’ claims should be stayed rather than rejected pending consent from administrators where companies are in administration, the Employment Appeal Tribunal (EAT) has held.
In Unite and Ors v Sayers Confectioners Ltd [2009] UKEAT, the union Unite succeeded in its challenge to place time limits on employees’ claims where the employer company was in administration.
Under the Insolvency Act 1986 (IA 1986), the consent of administrators is required for the commencement or continuance of proceedings against a company in administration.
However, most tribunal claims have to be issued within three months, less one day, of the date employees are dismissed.
According to Unite, some employment judges have been taking a literal interpretation of IA 1986, meaning many claims are time-barred.
Unite brought the challenge after company Sayers Confectioners Ltd made its employees redundant.
The employees’ claims were rejected on the basis of the Insolvency Act. On appeal, however, the EAT ruled the claims should be stayed.
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