Henry Construction could face legal action over the way its redundancy process was managed as it fell into administration.
Former employees who lost their jobs when the £400 million turnover tower builder collapsed last month have asked employment law experts Pearson Solicitors and Financial Advisers to determine if they can claim for a Protective Award – or compensation by employment tribunal.
Pearson said it had been contacted by “worried employees” formerly of Henry’s to investigate the redundancy process.
The law firm added if staff can pursue a claim for a Protective Award and are successful, they could receive up to 90 days’ gross pay in compensation.
However, if a company goes bust and the employer cannot pay the award, the government guarantees up to eight weeks’ pay, capped at £643 per week less any arrears received from the Redundancy Payments Office, it is understood.
Henry Construction Projects filed for administration on Thursday 8 June, amid a string of legal claims.
FRP Advisory, the corporate restructuring firm appointed as joint administrators of Henry, confirmed shortly after 40 members of staff had been made redundant, but that a small number were kept back to assist administrators.
Since then, FRP has been assessing the position of Henry’s business, including its assets and liabilities, with advice from sector professionals.
Property consultancy, Gateley Vinden, was helping FRP contact developers with whom Henry was known to have engaged.
Whereas asset valuation and sales practice, Hilco Valuation Services, was supporting with asset recovery and the disposal strategy.
Henry has now stopped trading altogether.
“If employers did not consult with the appropriate representatives before making redundancies, then any staff made redundant may potentially make a claim. Insolvency does not excuse an employer of following the correct procedures before making staff redundant,” said Pearson employment solicitor, Alan Lewis.
He added: “We are in the early stages of investigating these claims and advising the staff on their options.”
Henry Construction declined to comment.
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