ISG employees could be entitled to redundancy pay

Dismissed ISG employees could be entitled to redundancy pay after the construction giant filed notice of administration last Thursday.

Last week, administrators took control of ISG, making 2,200 staff redundant and sending shockwaves through the whole industry.

Build UK chief executive, Suzannah Nichol, told the BBC’s Today programme many smaller businesses in its supply chain ‘may not now be paid’, potentially compromising their futures.

The insolvency service said: “This will be a worrying time for employees, as well as their customers and suppliers. Government will do all it can to support them.”

Dismissed employees might be eligible for statutory redundancy pay, arrears of pay, compensatory notice pay and holiday pay from the insolvency service.

Eligible employees are those who worked for one of the ISG Companies under an employment contract, while workers and self-employed contractors who provided services to the ISG Companies are not eligible to apply.

Instead such individuals are told to contact the administrator to register as creditors. 

Meanwhile, company directors have been directed to check for eligibility through the provided link.

The eight companies in the group (the ISG Companies) entered administration on 20 September 2024 with Timothy Vance, Alan Michael Hudson and Dan Edkins appointed as joint administrators of the following companies:

• ISG Central Services Limited 
• ISG Interior Services Group UK Limited 
• ISG Fit Out Limited 
• ISG Engineering Services Limited 
• ISG UK Retail Limited 
• ISG Retail Limited 
• ISG Construction Limited 
• ISG Jackson Limited 

ISG, owned by US firm Cathexis, is understood to be the sixth-largest construction company in the UK by turnover, with revenues close to £2.2 billion.

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