Chaudhry v Paperchase Products Ltd & Another [2025] EAT 181
Appeal against the refusal by the Secretary of State of a declaration under s188(3) of the ERA to pay the Claimant a basic award. Appeal dismissed.
The Claimant claimed unfair dismissal against his employer. After filing an ET3 contending that the dismissal was fair, the employer became insolvent. The claim against the employer was (and remains) stayed. The Claimant brought a claim against the Secretary of State to recover a payment in respect of a basic award for unfair dismissal from the Secretary of State. The ET had not made any decision in the original claim and had not made any basic award or any other award of compensation. The point of law raised was described in the claimant’s skeleton thus: “Can an employee make a claim against the National Insurance Fund for a basic award, without an Employment Tribunal judgment that they have been unfairly dismissed?”. The ET said no. The Claimant appealed.
The EAT dismissed the appeal. The judge below had correctly dismissed the claim against the Secretary of State. The provisions of Part XII of the ERA were clear and were to the effect that an employee whose employer becomes insolvent cannot recover in respect of a basic award for unfair dismissal unless an employment tribunal has adjudicated the claim and decided to make a basic award of compensation for unfair dismissal.
Published: 19/12/2025 16:00