14 April 2008
Workers awarded £64k compensation after employer stops trading
A group of construction workers who lost their jobs after their employer stopped trading have been awarded £64,000 in compensation.
Thomson (of Ayr) Construction, which had been based on Old Farm Road in Ayr, told 50 staff that they were no longer employed by the firm, effective immediately, after it ceased operating in May 2007, the Glasgow Evening Times reports.
Driver and labourer William Cunningham of Shawbank Place in Kilmarnock, along with 15 other employees, put in a claim for a protective award of 90 days worth of pay on the basis that they were not consulted before being dismissed on redundancy grounds.
They also said that they held the belief that there were no special circumstances that legally allowed the firm to do so.
Employment judge Robert Gall said at a tribunal that the award should be made. However, as the company is now in liquidation the workers are now only able to claim eight weeks of pay from the Redundancy Payments Office.