Tribunal awards payout to former staff of collapsed timber firm

Almost 100 former employees of a collapsed timber frame manufacturer will receive compensation after a tribunal judged that it had breached employment rights.

Robinson Manufacturing went into administration in May 2023, causing the loss of 140 jobs across its operations in Wolverhampton, Wellingborough and Essex.

It was accused of failing to consult staff before making them redundant in a claim by 95 former employees at a tribunal last month.

The tribunal judged in favour of the staff and awarded them the maximum compensation for this type of claim.

Compensation of up to £5,600 per claimant will now be paid by the Secretary of State due to the company’s insolvency.

Managing director of Nualaw, Nuala Toner told TheBusinessDesk.com: “The tribunal acknowledged the failure of Robinson Manufacturing Limited to undertake consultation before making more than 100 employees redundant. This failure was a breach of the claimants’ employment rights and meant they had no opportunity to look for alternative employment or prepare for the sudden loss of employment.

“Due to the insolvency of the company the employees had to claim notice, redundancy and outstanding wages from the Secretary of State, who will now also have to pay up to £5,600 for each employee who brought proceedings at the tribunal.”

Administrators Paul Meadows and Matt Cowlishaw, of Teneo Financial Advisory, had secured a pre-pack deal for its Ebbw Vale site, with Solihull truss manufacturer Wyckham Blackwell purchasing the business and its assets.