Thousands of former Comet employees could share nearly £25
million after an Employment Tribunal ruled that the company and its administrator
Deloitte failed to consult staff properly when nearly 7,000 people
were made redundant in 2012.
Whenever large scale redundancies are proposed, an employer, or
its administrator, must consult with employee representatives.
Failure to comply exposes the insolvent employer to compensation
claims of up to 90 days' pay for each affected employee. An
insolvency situation does not exempt an employer from this duty and
the government ultimately picks up the bill, subject to certain
caps on the payments.
The employer or its administrator must also notify the
Department of Business Innovation & Skills (BIS) of the
proposed redundancies. Failure to properly notify BIS is a criminal
offence punishable by a fine of up to £5,000.
