Former workers at collapsed contractor launch unfair dismissal claim

X The Business Desk

Register for free to receive latest news stories direct to your inbox

Register

Half a dozen workers affected by the collapse of civil engineering contractor nmcn have begun the process of taking legal action amidst allegations that it failed to properly consult staff during the redundancy process.

The Nottinghamshire-based company appointed Grant Thornton as administrator last week and while some divisions of the failed firm have now been bought by competitors, around 80 jobs were lost in nmcn’s building division.

Law firm Simpson Millar says it has since been contacted by six former workers affected by the news, and who claim they were not consulted over the job losses.

Simpson Millar’s employment team has now begun investigations and are looking to secure a Protective Award for those affected. The firm has also launched an eligibility checker so that people can see if they can make a claim.

According to one member of staff in touch with the firm, the notice of redundancy was announced on 7th October.

Where an Employment Tribunal finds in the favour of the employees, they will be able to access the funds of up to £4,352 via the Government Insolvency Service.

Anita North, an employment law expert at Simpson Millar, said: “Sadly, we have been instructed by dozens of people who have been negatively impacted by job losses within the construction industry over the past year.

“While there are reports that some jobs have been saved with other companies swooping in to purchase some of the divisions, as is often the case when a business enters into administration, many others have found themselves out of work with little more than a moment’s notice.

“As you can imagine the people we are speaking to are extremely worried about finding alternative work given the current climate.”

A Protective Award is a payment awarded by an Employment Tribunal in cases where an employer fails to follow the correct procedure when making 20 or more redundancies and, where an Employment Tribunal finds in the favour of the employees, they will be able to access the funds via the Insolvency Service.

A spokesperson for Grant Thornton said the administrator would not be commenting on the matter.

Close