In light of ISG’s recent financial collapse, government intervention is underway to support affected employees.
- The Insolvency Service has outlined eligibility for redundancy compensation for former ISG staff.
- Approximately 2,200 ISG employees have been immediately impacted by the company’s administration.
- Non-eligible workers are advised to register as creditors for potential compensation.
- Redundancy applications are processed with an aim to issue payments within six weeks.
The UK government has pledged comprehensive support for employees of ISG, offering redundancy payments as a mitigating measure following the company’s financial collapse. In a recent statement, the Insolvency Service confirmed that those employed under a contractual agreement by any of the eight ISG subsidiaries in administration will be entitled to make claims for various compensations, such as statutory redundancy pay, outstanding salary, compensatory notice pay, and unpaid holiday entitlements.
These subsidiaries under administration include ISG Central Services Ltd, ISG Engineering Services Ltd, and ISG Construction Ltd, among others. However, it is imperative to note that individuals classified as workers or independent contractors are excluded from statutory redundancy benefits. Instead, they are encouraged to engage with the appointed administrators, Ernst & Young (EY), to lodge their status as creditors.
The immediate impact of ISG entering administration is profound, with around 2,200 staff facing redundancy. Furthermore, an additional 200 positions are anticipated to be at risk as the administrative process unfolds. To facilitate the redundancy claim process, affected employees are required to email a specific address to obtain a case reference number before proceeding with an online application via the governmental platform.
The Insolvency Service has committed to processing eligible claims expediently, targeting the disbursement of approved redundancy payments within a six-week timeframe post application. This swift response is intended to alleviate the financial strain on affected employees during this tumultuous period.
The government’s initiative aims to cushion the blow of ISG’s downfall, providing a safety net for its former employees.
