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Employer ordered to pay £750,000 for failing to properly consult on redundancy

The tribunal ruled the company dismissed 20 or more employees without proper consultation with their representative.

In an insolvency situation employees can claim up to eight weeks’ pay arrears capped at the statutory maximum (in this case £464 per week) from the government’s redundancy fund.

Eighty workers who were dismissed in February should each have received eight weeks’ pay. They are expected to receive in the region of £3,700 each - a total of £296,000.

Eighteen workers who were dismissed in April should each receive three weeks’ pay from the redundancy fund which will amount to about £1,300 per person - £25,000 in total.

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