Redundancy payments given to workers in employment law case

Posted 02/03/2012

Former employees of Hulme Upright have been awarded redundancy payments after the company went into administration.

The enterprise was sold to three former directors for £155,000 in July 2011 after HM Revenue and Customs threatened to close it down, the Sentinel reports.

It then moved to offices in Manchester and started trading as Hulme Upright Architects, although 26 employees were made redundant with 90 days’ pay.

These workers have now been awarded £252,000 in compensation after an employment law tribunal in Birmingham ruled a constructive or meaningful consultation did not take place before the job losses were announced.

Former technician Danielle Davies said: “It was horrible – you never think something like that is going to happen to you.”

The government states all employees have the right to a consultation before they are made redundant, which involves a conversation about why they have been selected and if there are any alternative options.