Ex-ISG employee awarded £16k for breach of contract

On 20 February, an employment judge ruled that ISG Retail Ltd (in administration) failed “to consult properly or at all with the claimant regarding proposed redundancies”.

Under section 188 of the Trade Union and Labour Relations (Consolidation) Act 1992, employers planning to make redundant 20 or more employees within 90 days or less must consult with staff or their representatives about how the proposed dismissals will affect them.

Around 2,200 staff were made redundant after eight companies of the ISG group filed for administration last year.

Dhanda was awarded £16,495.89 in compensation, which covers the 90 days that an employee can receive a protective award for breach of contract in these circumstances. 

A protective award is a financial penalty an employment tribunal can impose on an employer that breaches its collective consultation obligations under the Trade Union and Labour Relations (Consolidation) Act 1992.

No representatives for ISG Retail attended the online hearing.

Ernst & Young, ISG’s administrators, and Dhanda have been approached for comment.

This article was originally published by Construction Management.