Phones 4u failed to collectively inform and consult with employees when 2,500 were made redundant prior to its collapse in September 2014.
Under UK employment law, employers are obliged to collectively inform and consult with employees when it proposes to make 20 or more employees redundant.
Employers need to take great care in moments of re-organisation. It is imperative that businesses take legal advice in order to ensure they do not fall foul of the consequences that follow from not taking heed to their obligations.
More than 400 former staff members will get around £3,712 each, from the Redundancy Payments Service. This is funded by the taxpayer.