£30k payout for Hall Construction workers 'left in the dark' over firm going into administration
HISTORIC FIRM: Hall Construction in Clay Street, Hull, went in to administration in January
By Hull Daily Mail | Posted: 1 Aug 2017
Employees of a Hull firm who complained they were “left in the dark” over their employer’s decision to go into administration earlier this year have been awarded more than £30,000.
Northern employment tribunal Judge Lancaster was told that Hall Construction Group Ltd of Clay Street, Hull, failed to carry out full consultations with the workers’ appropriate representatives prior to the firm going into administration.
The nine employees who made legal claims for wages complained that the impending situation was a breach of the Trade Union Labour Relations Act.
They sought protective awards – the legal term for the equivalent of weekly wages - because of the consultation failure.
After hearing evidence at a tribunal in Leeds, Judge Lanaster said: “It is clear from written representation of both parties that there was no consultation with the employees’ appropriate representatives about the firm going into administration.
"The company failed to comply with the requirements of the Trade Union and Labour Relations Act and I make make protective awards of 90 days dating back from January 2017.”
Protective awards are capped by the Government at £380 a week.
The judge said the firm must pay each claimant 90 days protective awards – making a total claim of more than £30,000 which is more than £4,000 plus each.
The 130-year-old firm went into administration in January, putting the jobs of 65 workers at risk.
The firm built the Centre for Digital Innovation next to the River Hull and was working on a number of contracts - including work for Hull City Council.
But the firm later faced difficulties following a £3m loss.
Joint administrator Julian Pitts of Begbies Traynor said at the time that the situation was “extremely sad.”
He added the firm had been working on two fixed priced contracts but that one of them had a £2.9 million loss.
“We are trying to find a buyer for the firm," he said at the time.