Struggling with the impact of the pandemic, Wigan based holiday company Shearings went in to administration as their parent company declared themselves insolvent in May 2020, leaving over 2000 employees redundant.
Over 900 employees brought claims for the protective award against Shearings for their failure to consult them on their respective redundancies, with total losses expected to be within the region of £4million.
A judge at an employment tribunal has now ruled that Shearings had failed to follow the correct procedure to carry out a proper consultation with the redundant employees, qualifying them to recover the protective award from the Government’s Redundancy Payments Service.
The protective award pays up to eight weeks’ pay when an employer has become insolvent and is found not to have properly consulted staff over redundancies. Each of the 937 claimants will now seek recovery of 90 days gross pay (which is capped at £4,304 where a company is insolvent).
At Stephensons we have a dedicated team of solicitors who specialise in employment law and can advise businesses and employees on redundancies, the steps to follow and any issues that may arise out of a redundancy process. You can contact a member of our employment law team to discuss concerns you may have over your redundancy, or indeed if your business is considering making redundancies and wishes to seek advice as to the correct steps to take to mitigate legal recourse. Call us today on 0161 696 6170.
By Terri Li, graduate paralegal in the employment team