Former staff at fashion chain Peacocks have today won £1,650 each on average after an employment tribunal ruled that the company failed to properly consult over redundancies.
Peacocks fell into administration in November 2020.
When it did, more than 140 staff turned to law firm Aticus Law to get protective awards.
These are a sort of compensation employers are ordered to pay by an employment tribunal when making staff redundant without consulting with them first.
Today the workers have won the right to claim up to eight weeks’ worth of pay after a judgement by the Aberdeen Employment Tribunal.
Aticus Law said the total claim would be more than £230,000 - £1,642 on average per worker.
The group of 140 staff cannot claim more than £544 a week.
Mohammed Balal of Aticus Law said: “Today’s judgment has come as a huge relief to the dozens of former staff who were made redundant from Peacocks when it collapsed almost 18 months ago – leaving many unemployed, worried about money, and uncertain about what the future had in store.
“Now that the judge has ruled in favour of the workers, we are able to access a protective award on their behalf, which is a form of compensation up to 90 days’ gross pay.
“We will be working tirelessly to access the funds as quickly as possible so that our clients can finally draw a line under what has been a difficult ordeal, and to look to move on with their lives once and for all.”
Peacocks was bought out of administration in April 2021 by a consortium led by Steve Simpson, a former executive at Edinburgh Woollen Mill, the firm's owners.
Edinburgh Woollen Mill has been approached for comment.
Balal added: “Many people don’t realise that you can only get a protective award payment if you are included as part of the claim and are listed as part of the schedule of claimants attached to the tribunal judgment.
“If you sadly find yourself in a similar situation in the future my strong advice is that you can’t simply watch from the side-lines while ex-colleagues take the legal challenge forward. It’s important to make sure your name and specific job title is included.”
Peacocks was set up in Warrington in 1884.
It now employs more than 6,000 staff in its 400 UK stores and 200 outlets worldwide.
