An employment tribunal’s recent decision has granted protective awards to 82 former staff members of SSB Group, who were made redundant without prior consultation.
- Judge Lancaster previously made a similar decision for nine ex-SSB employees, with each entitled to a 90-day award beginning 29 November 2023.
- SSB’s redundancy led to nearly 200 employees losing their jobs after the company entered administration, owing £200m to litigation funders.
- A similar judgement favoured former Axiom Ince employees, highlighting breaches of the Trade Union Labour Relations Act concerning consultation processes.
- The judge’s rulings underscore systemic issues in redundancy processes and the protection of employee rights under challenging financial circumstances.
The employment tribunal’s decision to award protective payments to 82 former employees of SSB Group offers a significant commentary on the necessity of due process in redundancy scenarios. Judge Lancaster’s ruling provides these individuals with compensation equivalent to up to 90 days’ pay. This decision mirrors a previous judgement involving nine other ex-SSB employees, indicating a pattern of procedural shortcomings by the firm.
SSB Group faced financial difficulties leading to administration in January, with debts of £200m owed to litigation funders. This collapse resulted in nearly 200 redundancies. Under such circumstances, protective awards serve as a form of redress for employees who were not consulted prior to losing their jobs. The legal framework allows for compensation between 45 to 90 days when over 20 employees are dismissed from a single location without adequate consultation.
For insolvent employers like SSB, these awards are funded by the National Insurance Fund; however, they are capped at eight weeks’ pay. The tribunal found that SSB failed to provide necessary evidence or explanations for its redundancy process, reinforcing the judge’s decision for maximum compensation duration.
Parallelly, former employees of Axiom Ince were also awarded similar protective payments by Employment Judge Nicolle. The shutdown of Axiom Ince in October 2023 by the Solicitors Regulation Authority precipitated the redundancies. The tribunal noted violations of consultation obligations under the Trade Union Labour Relations Act. Despite Axiom Ince having multiple offices, inconsistencies in employee numbers per location complicated the adjudication process.
These cases reflect not only the challenges faced by the employees but also highlight a broader issue within corporate approaches to redundancy procedures. As claims continue to emerge, some rulings have seen substantial awards despite the constraints of the Manchester office redundancies, where fewer than 20 staff were affected. It remains evident that when employers fail to adhere to statutory requirements, tribunals are inclined to rule in favour of employees.
These tribunal decisions underline the critical importance of adhering to legal obligations during redundancy processes.
