An employment tribunal has ordered a transferee to pay compensation of £65,500, representing £500 for each of 131 employees, to a transferor for failure to provide employee liability information in breach of regulation 11 of the Transfer of Undertakings (Protection of Employment) Regulations 2006 in the case of Eville & Jones (UK) Ltd v Grants Veterinary Services Ltd (In Liquidation). The case concerned a second generation contracting out of services following a re-tendering exercise.

In ordering compensation, the tribunal considered the requirement to make an award that was just and equitable, having regard to the loss sustained as a result of the transferor’s failure to provide the necessary information and the limits on the transferee’s ability to mitigate its loss. The tribunal found that the transferor, who was in severe financial difficulties, had reasonable grounds to believe that its employees might bring claims against the transferee for the salary payments that were due to them at the end of the month before the transfer.