Directors, managers – and now administrators – may face personal prosecution if they fail to submit an HR1 form within the prescribed time.
Anita Mulholland explores a recent decision on personal liability for failure to notify the Secretary of State of proposed collective redundancies.
In R (on the application of Palmer) v Northern Derbyshire Magistrates’ Court [2021], the High Court held that administrators appointed on behalf of a company’s creditors can be criminally liable under s194(4) of the Trade Union and Labour Relations (Consolidation) Act 1992 (TULRCA).
This case is a landmark ruling on the duties of administrators. However, it also brings to light the duties incumbent on all senior officials when entering into collective consultation and the importance of submitting an HR1 form correctly and on time. The ruling provides some useful discussion on who may be at risk of prosecution for a company’s failure to carry out its statutory duties.
This article was first published in the Employment Law Journal, February 2022.