A court ruled that over 900 people who lost jobs last year when Shearings went into administration were not properly consulted during the redundancy process.Specialist Leisure Group, the parent company of coach operators, went into administration in May 2020. It lost approximately 2,600 jobs and cancelled 64,000 bookings.Leger Holidays has since acquired the Shearings brand and relaunched it with no connection to SLG.After SLG's demise 937 former employees instructed employment law specialists to take legal action for them. They claimed that they weren't properly consulted over the redundancy process.An Employment Tribunal Hearing judge has ruled that Shearings did not follow proper procedures to conduct a proper consultation.Simpson Millar, which represents the workers, stated that the claim's value is likely to be around 4 million.Damian Kelly, Simpson Millar's head of employment, stated that the Shearings collapse in May 2020 was a very difficult time for staff. It also left thousands without work in an extremely tough year, especially for those in the travel industry. The claim has a value in the range of 4 million.Many people believe that there is nothing that can be done when a company goes bankrupt. However, this is incorrect. Under UK employment law, employers still have the duty to consult with employees at risk of being laid off.If this law is ignored, it can cause distress and extreme financial hardship for the affected, many of whom will be left financially strapped while trying to find a new job with little notice if at all.An employment tribunal judge ruled in this case that Shearings failed to follow the proper process. This has resulted in hundreds of people being left out of pocket.We are pleased with the result and that we were able to assist our clients in obtaining the justice they deserve.This judgment opens the door to a payment in the form of Protective Awards from the Redundancy Payments Service, which is part the government's Insolvency Service.RPS is a scheme funded by the government that pays employees up to eight weeks' pay if an employer becomes insolvent after it has not properly consulted employees about subsequent redundancies. Other funds due to employees are also paid by the RPS, including notice pay, arrears of vacation pay, and redundancy pay. These claims can be filed online by employees, but a claim for a Protective Award must be submitted to the Employment Tribunal Order.Kelly said: In light of the employment tribunal rulings, our clients will be compensated up to 90 days gross for their work. However, the maximum amount is 4,304 due to the fact that the company has declared bankruptcy.Many people find themselves in dire situations and the National Insurance Fund, which employees contribute to, is a lifeline. Our clients are happy that this matter is over so they can move on with their lives.Former employees of Simpson Millars' leading employment law team are currently being instructed by Simpson Millars. They were affected by the collapses of several well-known travel companies, including Thomas Cook and Flybe.The firm recently secured more than 135,000 workers who lost their jobs after British Midland International (FlyBMI), went into administration.Kelly said, "Unfortunately we are working for several thousand clients whose livelihoods were turned upside down by the turmoil experienced in the tourism industry over the last year."A Protective Award claim does not immediately result in cash. The claim must be made to an Employment Tribunal. This can take some time due to the limited resources available to Tribunals.It is however a legal protection that anyone affected by the lack thereof should take advantage of. As this will offer some long-term security, we are committed to pursuing a Protective Award claim in order for money to be recovered in successful claims.
