A total of £80,000 in compensation has been paid out to 14 former employees of a carpet firm based in Kidderminster, a local newspaper has reported.
According to the Kidderminster Shuttle, the workers told Birmingham Employment Tribunal that they were informed they were losing their jobs at Enterprise Weaving Company with no prior consultation or warning.
While they were told the firm was at risk of insolvency, a tribunal check found the company remained active.
In total, each employee was granted an initial compensation package worth around £6,000, which included redundancy pay, a week's unpaid wages and notice money.
Some employees were awarded a further package including two weeks' wages for not having a contract by tribunal chairman Pam Hughes.
However, the newspaper reported that the firm's future may be in jeopardy and it may not be able to pay compensation to all parties involved due to financial problems.
Ms Hughes advised claimants to keep an eye on the issue and suggested they may be able to seek money from the government's redundancy office.
Earlier this month, Personnel Today reported that tougher measures from justice minister Jack Straw could be on the way to ensure that employees receive any damages they are entitled to.