Having purchased the company following its administration, Paragon Print and Packaging, Technoprint and Sessions Label Solutions faced a claim for unfair dismissal by the union.
However, a judge ruled that the redundancies made by the administrator on the day he was appointed were not made with a view to making a sale of the business more attractive and, therefore, were not caught by the TUPE regulations.
The judge formally dismissed three claims against Technoprint as well as six outstanding claims against Paragon and two against Sessions Label Solutions.
She noted that Sessions had been losing money for "several years" and had finally run out of cash. One of its main suppliers had put the company on ‘stop’ and the administrator had no money to pay wages or buy materials and had no work for the majority of the employees to do. He therefore dismissed them with immediate effect.
The decision also means that the three companies will not inherit liability for any ‘protective award’ if the claim against William Sessions for failure to consult is successful at a future hearing.
Technoprint managing director Mark Snee said: "While I appreciate that the union had to do the best for its members, in this particular case the claims against the purchasers were ill-conceived and had taken a great deal of time and money to defend."
It appeared Technoprint was cleared in April, however the case has dragged on, culminating in last Friday’s final appearance in court.
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