Ilke Homes staff to take legal action following company’s collapse

More than 80 ex-employees of Ilke Homes who lost their jobs when the business went into administration last week are taking legal action over the way they say the redundancy process was managed.

Based in Flaxby, near Knaresborough, and employing more than 1100 people, news that the modular homes builder had gone into administration broke last week, resulting in the closure of its manufacturing facility.

Reports suggest that the majority of staff were made redundant with immediate effect, while a small number have been retained to assist the administrators with the winding up process.

Commenting on the company’s collapse and the redundancies a spokesperson for AlixPartners, the appointed administrator, said this was an ‘incredibly difficult time’ for all associated with Ilke Homes, particularly its employees.

Further to the announcement, specialist employment law experts at Aticus Law says it has already been instructed by more than a 80 affected individuals – including more than 60 workers from Flaxby – and is now in the early stages of investigating concerns around how the redundancy process was managed.

The staff involved say they were sent home around two weeks ago with pay but were made aware that the company was in trouble and that it was looking for a new investor. Last week, they were called to a meeting during which they were advised that they were being let go.

As part of the legal process, Aticus Law will determine whether ex-employees are eligible to claim for a Protective Award claim against the company.

The firm says that if their clients are able to pursue a claim and are successful, those involved in the legal challenge will receive up to eight weeks’ worth of pay in compensation, with a cap of £571 per week.

Edward Judge from Aticus law said: “Sadly, the current economic climate and increase in the day to day running costs of a business means that the headlines are constantly dominated by companies going into administration.

“The consequences of that are that many people find themselves unemployed with little more than a moment’s notice, and inevitably deeply concerned about how they will pay their own bills and care for their families.

“Further to the collapse of Ilke Homes, we have been instructed by more than 80 former employees who have lost their jobs and who are now looking to pursue a Protective Award against the company.

“While there are reports to suggest that the business will be bought out of administration, this does not prevent people who have already been made redundant from pursuing a claim even if they are offered their jobs back in due course.

“Of course, for many of our clients that would be the ideal outcome, but the Protective Award is claimed because the redundancy process was not followed correctly, which of course has a short term impact on a person’s financial wellbeing.”

Judge went on to explain that the firm is now investigating whether there are grounds to claim for a Protective Award, that is, compensation awarded by an Employment Tribunal if an employer fails in its duties.

“Historically people were under the impression that when a business has collapsed there is nothing that can be done, however, this issue keeps hitting the headlines and, as a result, employees are far more familiar with their rights and their ability to hold the company accountable.

“That means that when a company doesn’t act in the way that it should, they are far more likely to reach out for legal advice.

“The Protective Award is a vital safety net for so many families in fast-paced redundancy situations that often leave them with no source of income and absolutely no notice.

“However, many people don’t realise that you can only get a Protective Award payment if you are included as part of the claim and are listed as part of the Schedule of Claimants attached to the Tribunal Judgment.

“We can’t stress this enough. You can’t simply watch from the side-lines while ex-colleagues take the legal challenge forward. It’s important to make sure your name and specific job title is included.”