We are all familiar with these few but regrettable situations where businesses fall out of the sky without warning or protocol.
It is absolute misery for the employees who have their job, and consequently their life, pulled from underneath them in a flash. And to rub salt into the wound they then have to compete with their colleagues in the pressure of the restructure process.
This is a huge contrast with a well managed closure which is more like a long summer’s evening sunset. First, the employer sends the HR1 form to the government. This is followed by collective consultation, individual consultation, and a notice period which gives employees time to look for work. Often outplacement counselling is provided too.
If you’re an employer facing the prospect of letting people go, our free guidance on this will help you – see our employer’s guide to redundancy which includes the typical costs, process and time-frames.
Former workers of a Fife paper firm have been awarded £1.5m in compensation after they were made redundant with just one day's notice.A total of 374 employees lost their jobs when Tullis Russell Papermakers, based at Markinch in Fife, went into administration in April 2015.Each employee received the equivalent of eight weeks' wages in compensation for their loss.The award follows a judgement from an employment tribunal in Dundee.Lawyers said that despite the company directors being under an obligation to provide employees with at least 45 days' notice - as more than 100 workers were losing their jobs - this was ignored, meaning each employee was entitled to sue for compensation.