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

Helen Wada: Why engagement initiatives fail without human-centric leadership

Workforce engagement has become a hot topic across the boardroom and beyond, particularly as hybrid working practices have become the norm.

Recruiters warned to move beyond ‘post and pray’ as passive talent overlooked

Employers risk missing most candidates by relying on job boards as hiring methods struggle to deliver quality applicants.

Employment tribunal roundup: Appeal fairness, dismissal reasoning, discrimination tests and religious belief clarified

Decisions examine appeal failures, dismissal reasoning, discrimination claims and religious belief, offering practical guidance on fairness, causation and proportionality.

Fears of AI cheating in hiring ‘overblown’ as employers urged to rethink assessments

Employers may be overstating concerns about AI misuse in recruitment as evidence of candidate manipulation remains limited.
- Advertisement -

More employees use workplace health benefits, but barriers still limit access

Many workers struggle to access employer healthcare support due to confusion, costs and unclear processes.

Gender pay gap in tech widens to nine-year high as AI roles drive salaries

Women in IT earn less as salaries rise faster in male-dominated AI and cybersecurity roles, widening pay differences.

Must read

Stephanie Coward: The power of data and AI

How can HR teams reconnect with the diverse set of employees they serve?

Shelley Hoppe: 5 signs your business needs an employee engagement plan

Is your business showing signs that it's in need of an employee engagement plan? Here are some tips to get your organisation on the right track.
- Advertisement -

You might also likeRELATED
Recommended to you