Just weeks after the Government vowed to protect British travel agent Flybe, who had admitted to struggling for some time, it was announced that the British Institution had collapsed.
Bosses at the travel giant blamed ‘Coronavirus pressure’ for the sudden closure which has now left thousands of passengers stranded and employees jobless.
The story is eerily similar to that of Thomas Cook, which had been trading for a monumental 178 years before its collapse last year.
What compensation could I be entitled to for a redundancy?
Obviously when a workplace closes this suddenly it can be a devastating blow to the employees who are found jobless without warning – by an employer who is unlikely to have any money left to pay them the wages that they are due.
It is unlikely that these employees would even receive the money they’re due when the workplace closes. So why are employers allowed to run businesses into the ground and leave staff in this position?
Legally, employers are not allowed to sit back in the knowledge that their business is crumbling and hide it from staff.
The law is clear that employers in situations like Flybe have a duty to consult with staff on ways to avoid dismissing them or look at ways to minimise the impact of the dismissals.
Staff on ground level are often best placed to speak about working practices and what could be done better to avoid the company collapsing and, ultimately, save themselves from being out of a job.
Fortunately, for the majority of employees they will be entitled to compensation for the failure to consult. Employees who lose their job in circumstances like the closure of Flybe are entitled to eight weeks pay for the failure to consult.
How to claim protective award after sudden closure
This compensation payment is known as a protective award. This is in addition to other payments that they are entitled to, including statutory redundancy pay, outstanding holiday pay, outstanding wages and notice pay.
As the company has gone into Insolvency the payment of all outstanding sums will be made to employees through the Government’s Insolvency Service. Although it defies logic that corrupt directors can run a business into the ground and then have the tax payer pick up the bill, employees should ensure that they claim for all the sums that they are entitled to.
At Watermans we can pursue a claim for protective award and guide you through the process of seeking any other payments that you are entitled to. Contact us today to find out what you could be entitled to in terms of compensation.