Date online: 14/05/2015
Former Carcraft employees may never know what went on behind the scenes which lead to the company going into Administration nor why their employment was terminated without prior notice but they do have rights to claim the monies owed to them.
It appears from the media that they were paid their wages/salaries up to the date their employment ended but what of their right to be paid for accrued unused holidays, pay in lieu of notice, statutory redundancy and a Protective Award arising from the company's failure to consult. The good news is that even if, as it appears, the company is insolvent and unable to pay its debts there is a Government Fund from which former employees can claim up to 6 weeks' holiday pay, one week's notice pay for each completed year of service (to a maximum of 12 weeks) and a statutory redundancy payment. Claim forms should be sent to each employee by the Insolvency Practitioner appointed or to be appointed by the Company.
A Protective Award is an award of up to 90 days' gross pay payable when an employer dismisses more than 20 employees at one establishment and fails to collectively inform and consult with them before dismissing them on the grounds of redundancy. Each affected employee has the right to apply to an Employment Tribunal for a Protective Award but there are strict time limits and any claim must be lodged with a Tribunal no later than 3 months less 1 day from the date of dismissal. If the application succeeds an Employment Judge will decide how many days should be awarded and even if the company becomes insolvent the Government Fund referred to above will pay a Protective Award subject to a cap of 8 weeks' pay.
If you are a former employee of Carcraft and unsure about your rights it is imperative that you seek early advice to prevent any claim you have from becoming time barred.
The contents of this article are intended for general information purposes only and shall not be deemed to be, or constitute legal advice. We cannot accept responsibility for any loss as a result of acts or omissions taken in respect of this article.