Ex- BHS workers share payout over failed redundancy process

-

A group of former BHS workers have collectively won up to £1m in compensation over the way they were made redundant when the retailer collapsed.

The employment tribunal awarded 110 former employees at the firm’s head office up to 90 days’ wages after their lawyers successfully argued that the company did not conduct a proper consultation process with them ahead of their dismissal.

The employees were not consulted for at least 45 days before losing their jobs in the wake of the retailer’s administration a year ago.

HRreview Logo

Get our essential weekday HR news and updates.

This field is for validation purposes and should be left unchanged.
Keep up with the latest in HR...
This field is hidden when viewing the form
This field is hidden when viewing the form
Optin_date
This field is hidden when viewing the form

 

The retailer should have adhered to the proper redundancy process, but many staff lost their employment with immediate effect.

The cash will come from the Government’s National Insurance Fund. Payments will vary in size depending on salaries but the government’s contribution is capped at £3,800 per person, which is the equivalent of 40 days’ pay.

The remainder is due from BHS, but it is unlikely that the money will be paid.

The employees were represented by the law firm JWK. JWK’s director, Carl Moran said:

“We are very pleased that the claim has been successful and that the claimants will at last receive some compensation for the way they were treated. It’s a very complex area of law and we were pleased to assist in achieving this just outcome.”

BHS collapsed into administration a year ago and created 11,000 job losses, making it the biggest high-street failure since that of Woolworths. The retailer had been owned by Sir Philip Green for 15 years until he sold it to Dominic Chappell, a former bankrupt, for just £1 in March 2015.

 

Rebecca joined the HRreview editorial team in January 2016. After graduating from the University of Sheffield Hallam in 2013 with a BA in English Literature, Rebecca has spent five years working in print and online journalism in Manchester and London. In the past she has been part of the editorial teams at Sleeper and Dezeen and has founded her own arts collective.

Latest news

England’s overnight World Cup clash and 5am pub opening prompt CIPD advice

The CIPD is urging organisations to agree any flexibility before England's 1am World Cup last-16 tie to help minimise disruption at the start of the working week.

Russell Cowley: Gen Z – rebuilding workplace culture, break by break

Gen Z workers are taking proper breaks and in doing so, they may be fixing something the rest of us broke.

Fit for Work: Weekend warrior? You can still reap the health benefits

Weekend exercise can still improve long-term health, even for people who struggle to fit physical activity into the working week.

Superdry co-founder’s victim warns workplace power can silence abuse victims

A survivor's account raises questions about speaking-up cultures and accountability in organisations.
- Advertisement -

UK’s always-on work culture ‘driving employee burnout’

Nearly half of UK workers say they end most working days mentally exhausted as rising workplace pressure leaves employees and managers struggling to switch off.

Andrew Murray on why no two days look alike

A people development leader shares how travel, training and a passion for helping others shape a working day with little room for routine.

Must read

Top tips to gain employment in the sustainable sector

Late last year, an historic agreement saw 195 countries agree to limit the rise in global temperatures to less than 2C. With the UK committed to delivering on the climate deal, significant growth is expected in the sustainable innovation sector, bringing with it a whole host of new opportunities for employment.

Four lessons for a great candidate experience

Providing a bad experience to job applicants can irreparably...
- Advertisement -

You might also likeRELATED
Recommended to you