900 former Shearings staff win redundancy battle
A tribunal has ruled that more than 900 people who lost their jobs when Wigan holiday company Shearings went bust were not properly consulted during the redundancy process.
More than 2,500 jobs were lost and 64,000 bookings cancelled when parent company, Specialist Leisure Group, collapsed into administration in May last year following the pandemic.
The Shearings brand has since been acquired acquired and relaunched by Leger Holidays, with no link to SLG.
Following the company’s demise, a total of 937 former staff instructed employment law experts at Simpson Millar to pursue legal action on their behalf amidst claims that they were not consulted correctly over the redundancy process.
One year on, the workers have won their legal battle against the business after a judge ruled that Shearings had failed to follow the correct procedure to carry out a proper consultation with staff at risk of redundancies.
Lawyers representing the workers say the value of the claim is now being calculated, and is expected to be in the region of £4m.
Damian Kelly, Head of Employment at Simpson Millar, said: “The collapse of Shearings in May 2020 came at very difficult 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 £4m.
“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 a 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.
“We are delighted with the outcome and to have been able to support our clients in order to access the justice that they deserve.”
The judgment now paves the way for a pay-out in the form of a Protective Awards claimed from the Redundancy Payments Service (RPS), which is part of the government’s Insolvency Service.
