Ilke Homes staff to take legal action after collapse

Almost 160 former employees of ilke Homes are consulting with lawyers over the redundancy process after the modular housing company entered administration last week. Ilke Homes’ modular factory in Flaxby, near Knaresborough in Yorkshire, employing more than 1,100 people, closed last week. Most staff were made redundant with immediate effect, while a small number have been retained to assist the administrators with the winding-up process. Aticus Law said it is in the early stages of investigating concerns about how the redundancy process was managed on behalf of 159 ex-employees. The firm said staff involved claim they were sent home around two weeks ago with pay but were made aware that the company was in trouble and searching for a new backer. Last week, they were called to a meeting at which they were told that they were being made redundant. Aticus Law will determine whether ex-employees are eligible for a protective award claim against the company – compensation awarded by an employment tribunal if an employer fails in its duties. The firm says if their clients are able to pursue a claim and are successful then those involved in the legal challenge will receive up to eight weeks’ worth of pay in compensation, with a cap of £571 per week. A spokesperson from AlixPartners told EG: “As administrators, we are keen to assist all employees understand their statutory position.” Edward Judge, a partner at Aticus Law, said: “Sadly, the current economic climate and increase in the day-to-day running costs of a business mean that the headlines are constantly dominated by companies going into administration. “While there are reports to suggest that the business will be bought out of administration, this does not prevent people who have already been made redundant from pursuing a claim, even if they are offered their jobs back in due course. “For many of our clients that would be the ideal outcome, but the protective award is claimed because the redundancy process was not followed correctly, which of course has a short-term impact on a person’s financial wellbeing. “The protective award is a vital safety net for so many families in fast-paced redundancy situations that often leave them with no source of income and absolutely no notice.” To send feedback, e-mail akanksha.soni@eg.co.uk or tweet @AkankshaEG or @EGPropertyNews Photo © ilke Homes