Despite the improving economy, it remains the case that the safety of no employee’s job can be guaranteed. This week has seen the collapse of Deben Transport and the appointment of Administrators, with a loss of over 200 jobs across depots throughout the country including Birmingham, Manchester and Leeds. This is devastating news for employees and their families.
Employees in these circumstances have certain employment protection rights and entitlements which can be enforced against the State even where the employer is insolvent. These can include rights to recover unpaid wages, holiday pay, notice pay and redundancy payments. In addition, where more than 20 employees are affected by a redundancy process employees may have additional employee consultation rights – failure to adopt the correct consultation procedures may give rise to additional claims also enforceable against the State.
It is not uncommon for businesses that fall into Administration to be rescued, usually by trade buyers. In these circumstances, employees may have additional rights where there is effectively a transfer of the business in Administration to a new employer. Depending on the circumstances, valuable rights and entitlements may arise out of the Transfer of Undertakings (Protection of Employment) Regulations 2006 (TUPE). These can sometimes be enforced against the solvent new employer.
Myerson Solicitors are experienced in advising employees affected by circumstances such as these. We have a proven track record of bringing group employee claims in the Employment Tribunal to enforce employment rights. There is real strength in employees acting together in employment claims as, on a collective basis, such claims are potentially very valuable and cannot be ignored. Myerson Solicitors are experienced in managing the complexities of group claims and can provide efficient and cost effective advice including in relation to the potential for cost sharing arrangements amongst claimants and/or insurers.
Before considering the possibility of enforcing employment rights or making claims to the State or the Employment Tribunal, it is essential to fully understand the factual background and circumstances of any particular situation. This can avoid the risk of wasting time, effort and legal fees. Any Deben employees who want to consider whether they have been treated fairly and in accordance with their entitlements should contact our specialist employment lawyers.
If you would like to discuss any of the issues raised in this blog, please do not hesitate to contact a member of our Employment department.
Myerson Solicitors LLP are premier employment solicitors in Cheshire and Manchester. Our expert solicitors advise on all aspects of employment law, including tribunal claims, TUPE transfers, contracts of employment and settlement agreements. We also provide extensive support to HR departments and professionals on the full range of employment matters.