13 October 2015
Sports Direct in Redundancy Scandal
Workers in a Sports Direct warehouse have been awarded compensation after being given 15 minutes warning about being made redundant.
It has been reported that Sports Direct made the decision to let one of their retail firms – USC Distribution – collapse and go into administration. USC Distribution was then bought out of administration by Sports Direct’s Republic division (another arm of the company).
Sports Direct Chairman Keith Hellawell has claimed that the board didn’t know about the administration until the day before it happened on January 7th 2015. Yet reports have said Chief Executive David Forsey had begun consulting with administrators on the 14th November 2014. Mr Forsey is now being charged with a criminal offence. It is alleged that he failed to notify the authorities about plans to lay off staff before dismissing workers at the warehouse in Dundonald, South Ayrshire.
Sports Direct received negative attention earlier this month when a BBC TV Programme on Accidents at a Sports Direct Warehouse in Derbyshire highlighted a series of serious injuries that had been suffered in their Shirebrook depot.
At the Dundonald warehouse, 83 workers were dismissed with just 15 minutes’ notice. Many of whom have now won compensation for failure to consult with them about the redundancies.
When an employer makes 20 or more employees redundant they must organise a collective consultation and consult with them at least 30 days before they are made redundant. Failure to consult representatives of all the affected employees means that the employer can face significant penalties of up to 90 days’ pay for each employee. In this case, the notice of dismissal was given before the consultation process started and so the employees were able to claim for failure to consult.
If you are facing redundancy, as a group or as an individual, the Employment Solicitors at Slater and Gordon Lawyers can advise you on your employment rights. We can tell you whether the proper procedure is being followed or not and provide you with the tactics you need to maximise your redundancy compensation pay or settlement agreement.
Call us on freephone 0800 916 9060 or contact us online and we’ll be happy to help.