Staff from collapsed logistics firm consider legal action
Staff who lost their jobs following the collapse of Solihull-based firm Corporate Solutions (Logistics) are considering taking legal action for compensation after it was alleged the company failed to consult them before making redundancies.
The company went into administration on 17 October.
The logistics firm, which operated at sites across the UK has now ceased trading with the vast majority of its 200 staff being made redundant. FRP Advisory has been appointed as the administrator.
The administration of the firm has prompted ex-staff to contact employment law specialists Morrish Solicitors to investigate allegations that the business failed to properly consult staff when making redundancies. This could result in legal action being brought to secure compensation — known as a Protective Award — for those affected.
Where 20 or more employees are made redundant at one workplace, a company is under an obligation to engage in an information and consultation process, which must start at least 30 days before the first redundancies are made. It is suggested Corporate Solutions (Logistics) didn’t start that process either at all, or in time, and that staff have been made redundant without any prior warning.
Tony Rippon, associate solicitor in Morrish Solicitors’ Employment Department, said: “Sadly, we’re seeing numerous cases of insolvency leading to mass redundancies and it’s a huge shock to those affected at a very difficult and uncertain time.”
“Unfortunately, not all of the payments that these redundant employees may be due can be recovered from the insolvent company. We have already received enquiries from those who have been affected by the news and who are looking for support and other ways of recouping their losses,” he added.
Rippon continued: “Regardless of whether a company is struggling financially, it still has a duty under employment law legislation to carry out an information and consultation process to warn staff at risk of redundancies. Where that does not happen, employees can bring a claim for a protective award and secure the compensation they rightly deserve.”