City Link was placed into administration on Christmas Eve. This is often a date when struggling companies fall into administration as it tends to be a commercial rent quarter date which can often tip struggling companies over the edge. The delivery firm closed all 51 depots with a loss of more than 2500 jobs.
Under s.188 of the Trade Union and Labour Relations (Consultation) Act 1992 (TULRCA), an employer is obligated to collectively consult with its employees when proposing to make redundancies. Where an employer proposes to make redundant between 20-99 employees, they must consult with those employees over a period of 30 days. Where an employer proposes to make 100 or more employees redundant, the consultation period is 45 days. Failure to consult entitles the employees to a Protective Award- punitive damages of up to 90 days’ pay.
One of our employment solicitors, Carl Moran, brought a claim on behalf of around 200 former employees who were awarded the full 90 days’ pay Protective Award due to City Link’s failure to carry out redundancy consultation.