Workers sacked by phone

We heard of a case around the end of January where seventy nine employees lost their jobs in an engineering firm as it went in to administration.  The workers lost their jobs after the company hit financial difficulties and was placed in to the hands of administrators, Kroll, after taking control of the business, Kroll called to dismiss the workers by phone, while it sought to find a buyer for the company.

This reminded us of the situation in Plymouth a few years ago when a large number of digital TV workers were dismissed by text message.  Clearly the statutory dispute resolution procedures have not had much of an effect in preventing this type of thing!

In this most recent case, the Trade Union Unite issued a claim for thirty nine of its members. An Employment Tribunal has ruled that the staff were unfairly dismissed, missing out on wages, holiday pay, pension contributions and redundancy pay.  The Tribunal found that the company and the administrators had failed to consult with the workers about their redundancy.  The hearing to decide how much compensation would be awarded to individuals has been scheduled for April 14.

It is clear that employers facing a financial difficulty should consider how best to protect their employees as soon as possible.  If there are Trade Unions involved, then they should be consulted at the earliest possible opportunity to ensure that these situations do not happen in the first place. 

If you are suffering with any difficulties from insolvency or redundancy do contact us to ensure that you are not falling in to a similar trap. Contact the Employment Team at Follett Stock on 01872 241700.