Manchester law firm Pearson Solicitors & Financial Advisers says it has been contacted by “worried employees” and asked to look into the redundancy process.
Pearson says that former staff of the collapsed contractor might be able to make a protective award claim if the correct redundancy procedures were not followed.
According to Pearson, a protective award is a “little-known” legal remedy which could yield each claimant compensation of up to 90 days’ gross pay.
“If employers did not consult with the appropriate representatives before making redundancies, then any staff made redundant may potentially make a claim,” said Pearson solicitor Alan Lewis, who specialises in protective award claims.
“Insolvency does not excuse an employer of following the correct procedures before making staff redundant,” he added.
“If you lose your job through administration, every penny counts. More often we are seeing SMEs across all sectors struggling and sadly some of them are having to shut up shop. This of course has a major impact on the workforce and if employees are told they are losing their jobs with immediate effect they can make a claim.”
Provided 20 or more employees are made redundant at the same establishment, all affected employees can pursue a claim for a protective award, regardless of how long they have been employed by the business, said Lewis.
“If the company has gone bust and your employer cannot pay your award then the government steps in and guarantees up to eight weeks' pay, capped at £643 per week less any arrears of pay you may have received from the Redundancy Payments Office, so employees really have nothing to lose.
Geoff Rowley and David Hudson of specialist business advisory firm FRP were appointed as joint administrators to Henry Construction Projects Limited on Thursday 8th June 2023.
Hudson said: “Henry Construction was a significant player of scale in the UK market. Unfortunately, given its financial position, it was not able to continue trading and so all operations have ceased. Regrettably, the majority of staff have been made redundant and we are supporting them in making the appropriate claims to the Redundancy Payments Office.
“We continue our work to gather information about the assets and liabilities of the business and understand the events leading up to the insolvency. As part of that process, we are engaging with developers regarding the status of each site.”
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