Manchester haulage company Deben Transport has announced the cut of 200 jobs after being rescued from administration just two years ago. It is understood that the redundancies have been implemented across all of Deben’s sites, 50 of which have been lost solely at the Manchester base.
The collapse has been attributed to the purchase of Elite Transport Services in April 2013 of their Manchester based competitor, a move which has been reported has since then weighed heavily on the company’s accounts. Despite the management’s efforts to recover the losses the company was forced into administration resulting in large scale redundancies.
Joint administrators from Ensors, Mark Upton and David Scrivener released a statement commenting on the necessity of the company’s actions “Regrettably the majority of workforce had to be made redundant once administration was inevitable.”
Understandably this has had an unsettling effect on employees as they now face an uncertain future away from Deben Transport. If you have been made redundant or are facing the threat of redundancy it is essential you are aware of your entitlements and legal rights.
Employers are bound by stringent procedures and guidelines regarding the enforcement of redundancies. Under UK employment law a company must:
- Carry out all procedures in line with the company’s statutory guidelines. It must be demonstrated that the company has adopted a fair selection when deciding which employees to make redundant.
- Employees must receive a consultation at the earliest opportunity where the business is considering redundancy.
- Ensure employees receive the statutory redundancy amount where they have provided two years or more of continuous service.
- Acknowledge their responsibilities to assist employees to find alternative employment.
Where you believe a breach of these guidelines has occurred you may be eligible to pursue a claim for unfair or constructive dismissal. The law surrounding redundancies is extremely complex, and employees are encouraged to contact a solicitor who specialises exclusively in employment law. Individuals should seek legal advice at the earliest opportunity as employment tribunal claims are subject to strict time limits. Redundancies can also result in settlement agreements which require an employee to take independent legal advice.
Here at Farleys our dedicated HR & Employment law department possess the technical skill and expertise to assist you through this difficult period. We realise the stress our clients face which is why we work tirelessly to ensure you receive the redundancy package to which you are entitled. For expert support and legal guidance on redundancy, settlement agreements, unfair dismissal and all HR & Employment law matters please don’t hesitate to contact us on 0845 050 1958, alternatively you can email us.