One hundred of the 600 plus former Phones 4U staff who initially began court proceedings against their former employer have been awarded the equivalent to 90 days pay. An ecstatic former employee involved in the case told Mobile, '!'
The ruling in the two year old case which concluded late last week finds that the retailer failed in its statutory duty to inform and consult its workforce prior to making mass redundancies.
The first many staff heard about their redundancy was when they turned up to work to find the shutters down, the lights off and a notice on the door.
The claim by the staff involved Protective Award compensation against Phones 4U via the company’s administrators PWC, began in late 2014.
Speaking to Mobile, Morrish associate solicitor Daniel Kindell, who worked on the case clarified that many of the staff who were successful were from the company’s HQ and the biggest stores, as the law requires 20 staff at each workplace to qualify.
It was also explained that due to the three month window in which action can be taken against an employer for this reason, there’s little hope of new claims under the same grounds being successful.
Though there’s unlikely to be any money left to pay out the 90 days wages, the government’s National Insurance Fund will now pay the staff the equivalent of 8 week’s wages.
As part of the administration procedure, the company’s creditors received differing amounts of that owed. For instance, the banks got every penny of their £20 million back, hedge funds which were owed £430 million will have received up to 24 percent, while none of the £78million owed in tax was reclaimed.
A spokesperson from PWC told Mobile, 'We can confirm that more than 400 former employees of Phones 4U Limited have been awarded 90 days' redundancy pay (Protective Award).'
'The Redundancy Payments service (Government National Insurance fund) will make payment for 8 weeks (56 days) at the statutory level of £464 per week. Any outstanding difference of balance remaining is treated as an unsecured claim as part of the administration.
We are pleased this case, which was uncontested by the administrators, is now concluded. We will continue to act in the best interests of all creditors.'