Ex-Carillion workers win right to seek compensation

Ex-Carillion workers win right to seek compensation

 

More than 250 former Carillion workers have won a legal ruling related to whether they were fairly compensated when the company collapsed in January 2018.

An Employment Appeal Tribunal has ruled that 263 former Carillion staff represented by the Unite union have the right to seek compensation in a full hearing due next year.

A seven-week hearing is scheduled to take place in 2022, which will rule on whether the former staff should be given protective award of up to 90 days’ gross pay for each employee.

Under UK law, Carillion should have issued a collective consultation if it was to dismiss more than 20 employees within a period of 90 days or less.

Unite assistant general secretary for legal affairs Howard Beckett said: “Unite made a commitment when Carillion collapsed to do everything possible to protect our members who lost their jobs without warning through no fault of their own. Three and half years later we are still fighting for our members to receive the compensation they deserve.

“While this was an important victory, the battle for compensation for our members is far from over and Unite will continue to represent them until this case is finally resolved.”

In January, an employment tribunal rejected Carillion’s argument that “special circumstances” applicable to the company’s collapse meant no protective awards should be made to workers for consultation failures that occurred. A subsequent employment appeal, lodged by Carillion’s management, was held on July 6; the previous ruling was upheld.

The case can be brought against Carillion as the company remains a legal entity despite being in liquidation, which is being overseen the Official Receiver.

A spokesperson for the Official Receiver said: “The Official Receiver has noted the tribunal ruling and is continuing to discharge his statutory duties as liquidator of Carillion.”

A separate legal challenge for £250m against Carillion’s auditor KPMG moved a step closer last month after the Official Receiver sent a letter of action to the firm warning it of a potential claim.

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