Workers who suddenly lost their jobs after the recent high profile collapses of two North East companies are said to be considering legal action.
Aticus Law says it has been contacted by more than 70 former Britishvolt staff and more than 30 Tolent workers after administrators took over the running of the business earlier this week. The firm says it is looking into the possibility of making a Protective Award claim - compensation awarded by an employment tribunal in instances where employers have not consulted staff before making them redundant.
If successful, the firm says former workers could secure up to eight weeks’ worth of pay in compensation, capped at £571 per week, from the Government's Insolvency Service. At Britishvolt around 230 people were made redundant while more than 300 were laid off at Tolent, in both instances shortly after the appointment of administrators.
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Aticus Law's Edward Judge said: "We have now been contacted by a number of individuals who have been affected by job losses following the recent collapse of Tolent, and from what we understand they were told that they had lost their jobs during a companywide meeting. Sadly, in the current climate it’s not unusual to read about businesses in a number of different sectors that are struggling make a profit, and that of course has a significant impact on employees when the only option is to cease trading.
"However, what is worrying is that despite these companies being fully aware of their legal obligation to enter into fair consultation over redundancies, that process seems to be bypassed entirely time and time again. Instead, staff are told that they have lost their jobs with immediate effect.
"The individuals who have reached out to us for advice regarding their rights are understandably very anxious and concerned about what the future has in store for them."
He added: "Historically people were under the impression that when a business has collapsed there is nothing that can be done, however, this issue keeps hitting the headlines and, as a result, employees are far more familiar with their rights and their ability to hold the company accountable.
"That means that when a company doesn’t act in the way that it should, they are far more likely to reach out for legal advice."
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