More than 600 former employees of ilke Homes who lost their jobs when the business went into administration are taking legal action over the way the redundancy process was managed.
Employment law experts at Aticus Law have been retained by hundreds of former staff to determine if they can claim for a Protective Award – or compensation by employment tribunal.
Aticus said if the correct consultation process was not followed and staff can pursue a claim and are successful, they could receive up to eight weeks’ worth of pay in compensation, with a cap of £643 per week.
“The Protective Award is a vital safety net for so many families in fast-paced redundancy situations that often leave them with no source of income and absolutely no notice,” said Edward Judge from Aticus Law.
It comes amid reports the modular firm went under owing £320 million to creditors, suppliers and subcontractors – and after machinery and equipment was stolen following an auction of the firm’s factory contents earlier this month.
More than 1,000 staff were made redundant when ilke Homes fell into administration in June – 1,039 were part of the company’s Homes division, while 19 had worked in ilke’s Land division.
Financial advisory firm AlixPartners was appointed as the administrator at the request of the directors of the modular housebuilder.
It is understood ilke suffered inflationary pressures and a lack of land supply linked to planning processes.
Aticus Law had previously been representing 454 former employees, now up to more than 600.
Former staff not currently involved in the case have until 4 September to add their name to the Schedule of Claimants, Aticus said.
Judge added: “You can’t simply watch from the sidelines while ex-colleagues take the legal challenge forward. It’s important to make sure your name and specific job title is included ahead of the 4th of September.
“We would urge anyone who is still considering taking legal action to reach out to our team as soon as possible to ensure that they are included in the claim moving forward.”
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