Thomas Cook PLC and associated UK entities have entered compulsory liquidation and are now under the control of the Official Receiver. The UK business has ceased trading with immediate effect.
It is widely reported that this resulted in the loss of over 20,000 jobs across the world including 9,000 in the UK alone.
The impact on Thomas Cook employees is understandably extremely difficult and distressing as they try to come to terms with the sudden loss of employment and income and the uncertainty and vulnerability this creates.
Thomas Cook employees may assume that as the business has become insolvent that they have no rights. That is not the case.
There is a duty on an employer to inform and consult employees where more than 20 employees are to be made redundant. This is known as a Protective Award and these are in place to support employees in cases like this.
Former employees of Thomas Cook could bring an Employment Tribunal claim that the company did not act lawfully because they did not keep them informed of the company’s situation. Employees could then seek to claim a Protective Award, which is a sum of up to 90 days pay.
In addition to the above, some monetary entitlements including outstanding salary, holiday pay, statutory notice pay, and statutory redundancy pay may also be able to be recovered from the Government via The Insolvency Service.
Thomas Cook employees are recommended to make sure they fully understand their legal position and options as an employee of an insolvent company.
Farleys Solicitors can provide expert employment law advice, support and representation for employees at all levels in relation to Employment Tribunal claims, Redundancy, Unfair Dismissal, Protective Awards and recovering unpaid monies via The Insolvency Service.
Contact Farleys Solicitors’ HR & Employment Team to discuss your rights and find out more about the options available to you on 0845 287 0939 or contact us online.