Clothing firm staff to take legal action after being given 15 minutes consultation over redundancies

Thompsons Solicitors are to represent workers at USC, which went into administration, losing 79 permanent staff and 166 agency or zero-hours contract workers at Dundonald in South Ayrshire.

Where 20 or more employees are to be made redundant, notice must be given to the business secretary 30 days in advance. Section 194 of the Trade Union and Labour Relations (Consolidation) Act provides that failure to comply with this requirement can result in a fine of up to £5,000.

The act also requires that the employer consult with representatives of the affected employees. In the case of 100 or more dismissals, this must take place at least 45 days in advance or 30 for less than 100 dismissals.

Lawyers explained that the case will likely be judged unfair and that compensation will be awarded by the Insolvency Service, the UK government executive agency which makes redundancy payments in such situations.

David Martyn, of Thompsons Solicitors (pictured), said the fired staff should expect up to eight weeks’ pay as a consequence of the employer’s failures in addition to redundancy payment owed.

Staff were given letters on January 14 explaining the situation, which stated: “After considering all possible options and the company’s financial position, the company has decided that there is a risk that it will be unable to continue to provide work for all of its employees and that it may therefore have to make redundancies.

It added a staff meeting would be held the same day to “consult with affected employees about this in so far as possible in the timeframes” and that the outcome would be decided the same day.

Staff were then given a second later, 15 minutes later, dated the same day stating the consultation was complete and that “the company was unfortunately unable to identify any alternative to your redundancy or any way in which your redundancy could be avoided”.

USC’s directors met in December last year, with the firm saying it could not repay its debts.