“In the wake of the sale of Arcadia Group to online fashion retailers Boohoo and Asos, many employees have been left shocked and confused – sadly however this is a common experience for many amidst the current economic backdrop,” said David Mitchell of Belfast-headquartered law firm Millar McCall Wylie.
“There is an obligation for all employers to adhere to employment law legislation when making redundancies. In Northern Ireland, if 20 or more employees are made redundant from one workplace, employers must commence a minimum 30-day consultation process with employees to inform them they are at risk of redundancy. Failure to enter into this process can make employees eligible for a protective award claim.”
A protective award claim is a claim for compensation of up to a maximum of 90 days’ gross pay. Where a company is insolvent, up to eight weeks of these awards can be paid by the Insolvency Service (capped at £560 per week). This applies to all full time and part time members of staff, regardless of the length of time they were employed.
“Whilst large employers are becoming susceptible to economic pressures amidst the most unprecedented of times, it is vital that employees understand their legal rights when something as devastating as redundancy occurs. Employees should act quickly as a three month strict time limit applies,” David added.
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