More than 80 of the former Ilke Homes employees who lost their jobs when the business collapsed last week are taking legal action over the way the redundancy process was managed.
Administrators for the business said the “significant majority” of the firm’s 1,100 staff, would be made redundant with immediate effect, while a small number had been retained to assist with the winding-up process.
Employment law experts at Aticus Law said the firm was in the early stages of investigating former staff’s concerns around how the redundancy process was managed.
Aticus Law has been instructed by more than 80 people to determine whether ex-employees are eligible to make a Protective Award claim against the company. The law firm said that if its clients were successful in their claims, they could receive up to eight weeks’ worth of pay in compensation, with a cap of £571 per week.
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.
Aticus Law representative Edward Judge 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.”
A spokesperson for AlixPartners, the appointed administrator, said this was an “incredibly difficult time” for everyone associated with Ilke Homes, particularly its employees.
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