An Employment Tribunal has awarded ex-employees of collapsed high street retailer British Home Stores (BHS) a £400,000 pay-out over the company’s improper redundancy procedures.
The news comes after the once-prominent retailer went into administration in April last year, dismissing numerous members of staff with immediate effect and without prior consultation.
A group of former BHS workers challenged the collapsed retailer at an Employment Tribunal in London, arguing that BHS had failed to carry out a proper consultation process with them before their employment was terminated.
Upon hearing evidence, the Tribunal found that BHS had exhibited “a complete failure to consult” with its employees prior to their redundancy.
It ruled that, although the company had entered administration at the point its employees were dismissed, the retailer still existed as a legal entity, and therefore had failed to satisfy its duty to consult with staff at least 45 days prior to making them redundant.
110 former BHS head office workers were awarded up to 90 days’ worth of pay.
According to reports, the Government’s National Insurance Fund will pay the staff up to a maximum of £3,800 each – or the equivalent of 40 days’ worth of pay – with the remainder expected to be paid by BHS.