Partner Article

Former construction employees to pursue legal action

Exeter based Midas Group Plc staff say company failed to consult over the redundancy process

Employees affected by the collapse of construction giant Midas Group Plc are looking to pursue legal action against the company over claims the redundancy process wasn’t properly managed.

Based in Exeter, with seven offices across the South-West of England and Wales, the shock announcement of Midas Group Plc’s collapse came on the 9th of February.

Reports suggest that the business could not recover from the challenges imposed on their supply chain during the pandemic.

Aticus Law says it has now been contacted by several former employees who claim to have not been properly consulted over the redundancy process.

The firm is now looking into the claims, with a view to pursuing legal action against them over how the redundancy process was managed.

If successful, those involved in the challenge will be entitled to claim a Protective Award which is up to eight weeks’ worth of pay in compensation, with a cap of £544 per week.

Mohammed Balal of Aticus Law today urged others who have been affected by the collapse of Midas Group Plc to check whether they are eligible to make a claim, and if so, to also ensure their job title was included in the legal action.

He said: “Unfortunately, the collapse of businesses in a variety of different sectors continues to dominate the news headlines, and for every business that has entered into administration there has also been a raft of redundancies.

“In the case of Midas Group Plc, it is understood that there are more than 300 employees who have also been affected.

“Staff members have had their lives turned upside down as a result of the collapse, and it is understandable that they are feeling anxious and concerned about the future.

“While many people think that as the business has collapsed there is nothing that can be done, those affected actually have the right to hold the company accountable. Under the current employment law if a business is making more than 20 employees redundant at one establishment, they must follow the correct consultation process.

“We’re obviously in the very early stages of understanding what happened in this instance, based on what our clients are telling us, that didn’t happen at Midas Group Plc.”

Mohammed went on to explain that the firm is now investigating whether there are grounds to claim for a Protective Award, which is basically compensation awarded by an Employment Tribunal if an employer fails in its duties.

He added: “It’s a really vital safety net for so many families in fast-paced redundancy situations that often leave them with no source of income and absolutely no notice.

“However, many people don’t realise that you can only get a Protective Award payment if you are included as part of the claim and are listed as part of the Schedule of Claimants attached to the Tribunal Judgment.

“You can’t simply watch from the side-lines while ex-colleagues take the legal challenge forward. It’s important to make sure your name and specific job title is included.”

This was posted in Bdaily's Members' News section by Isabella Storey .