Ex- BHS workers share payout over failed redundancy process

A group of former BHS workers have collectively won up to £1m in compensation over the way they were made redundant when the retailer collapsed.

The employment tribunal awarded 110 former employees at the firm’s head office up to 90 days’ wages after their lawyers successfully argued that the company did not conduct a proper consultation process with them ahead of their dismissal.

The employees were not consulted for at least 45 days before losing their jobs in the wake of the retailer’s administration a year ago.

The retailer should have adhered to the proper redundancy process, but many staff lost their employment with immediate effect.

The cash will come from the Government’s National Insurance Fund. Payments will vary in size depending on salaries but the government’s contribution is capped at £3,800 per person, which is the equivalent of 40 days’ pay.

The remainder is due from BHS, but it is unlikely that the money will be paid.

The employees were represented by the law firm JWK. JWK’s director, Carl Moran said:

“We are very pleased that the claim has been successful and that the claimants will at last receive some compensation for the way they were treated. It’s a very complex area of law and we were pleased to assist in achieving this just outcome.”

BHS collapsed into administration a year ago and created 11,000 job losses, making it the biggest high-street failure since that of Woolworths. The retailer had been owned by Sir Philip Green for 15 years until he sold it to Dominic Chappell, a former bankrupt, for just £1 in March 2015.

 

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