A tribunal has ordered Glasgow-based building firm Central Building Contractors to pay compensation to 149 employees that it dismissed without due procedure.
The business went into administration in April 2020 after difficult trading conditions, made worse by Covid-19 (Coronavirus), left it with a funding shortfall.
Former employee Jordan Kirk raised a claim for a protective award against the firm, and alleged that there were more than 140 employees who were dismissed as redundant on 29 April 2020 without any procedure being carried out.
The joint administrators confirmed by email that 149 employees were dismissed immediately. The tribunal accepted that there was no recognised trade union or elected representative involved, and that no steps were taken to elect representatives or consult in relation to the dismissals, a breach of section 188A of the Trade Union and Labour Relations (Consolidation) Act 1992.
It was also not disputed that the firm dismissed as redundant 20 or more employees at the same establishment within a period of 90 days, with no consultation or election in respect of the dismissals.
While the administrators stated that it was not possible for the business to trade in administration, no explanation was given for the failure to elect representatives or consult.
As a result, the tribunal found that the firm breached employment regulations by dismissing staff within 90 days without consultation, and that the claimant is entitled to a protective award, with the protected period being 90 days from the date of the first dismissal.
Employment judge David Hoey said: "No consultation took place with any elected representative and no steps were taken to do so. No reasons were given for such a failure. The explanation of being unable to trade during administration does not explain why the rules were not followed."
Central Building Contractors was contacted for comment prior to publication.
