More than 900 employees who lost their jobs were not properly consulted during the redundancy process when the Wigan holiday company Shearings went bankrupt.
More than 2,500 jobs were lost, and 64,000 bookings were cancelled when the parent company, Specialist Leisure Group, took over administration in May last year following the pandemic.
The Shearings brand has since been acquired and relaunched by Leger Holidays, with no link to SLG. Lawyers from Simpson Millar, the firm representing the workers, said the claim’s value is expected to be in the region of £4 million.
“The collapse of Shearings in May 2020 came at a challenging time for the staff and left thousands of workers out of work during what has been an incredibly tough year for all, but especially for those working in the travel industry. The value of the claim is in the region of £4 million,” said Damian Kelly, Head of Employment at Simpson Millar.
He further adds, “While many people assume that little can be done when a business goes into insolvency, that is not the case. Employers still have a duty under UK employment law legislation to carry out proper consultation with staff at risk of redundancies”.
“When that law is disregarded, it can lead to an extremely difficult and distressing time for those affected – many of whom are left struggling financially, whilst also looking to secure a new role with little, if any, notice.”
“In this instance, an employment tribunal judge ruled that Shearings had failed to follow the correct process, which has left hundreds of individuals out of pocket.” Damian Kelly explained
The ruling now paves the way for payment in the form of Protective Awards claimed from the Redundant Payment Service (RPS), which is part of the government’s Insolvency service.
Source: The Business Desk