Former Watt Brothers staff have secured payouts totalling £125,000 following the firm’s collapse.
A total of 78 ex-employees lodged a claim at an employment tribunal after bosses made them redundant without warning in October last year and failed to properly consult with its workforce.
The protective awards, which will be paid by the UK Government’s Insolvency Service as the company is no longer in business, will see each worker receive up to eight weeks’ pay.
Read more: State payouts over redundancy failures to rocket due to coronavirus, lawyers warn
Paul Kissen, a solicitor who specialises in protective awards for Thompsons Solicitors, represented the workers and said the case was an example of a common problem when big businesses collapse.
“The demise of Watt Brothers was a typical, and sadly too common, example of a company failing in its duty to consult collectively with employees before making them redundant,” he said.
“In these cases, the announcement comes right out of the blue, meaning employees have no chance to make arrangements to find alternative employment or help the company stay afloat.
“It was some relief for employees that we were able to win them up to 8 weeks’ pay each from the Insolvency Service after winning their claim in the Employment Tribunal.
“However, they should never have been put in this position in the first place.”
Watt Brothers was plunged into administration on October 17 last year, with staff and customers asked to leave the store in Glasgow’s Sauchiehall Street without warning.
As administrators KPMG moved in on the 104-year-old business, there was shock and disbelief among workers who were given no notice to find other work.
At the time, administrators said they had no option other than to make 229 of the 306 employees redundant with immediate effect.
Former employee Alanis Hunt said she and her colleagues were “extremely grateful” and “relieved” to receive their awards following the “unexpected redundancies”.
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