Former ISG employee wins breach of contract employment case

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. Former ISG employees shared with CM at the time their criticism about the company’s lack of communication prior to the collapse.

Dhanda was awarded £16,495.89 in compensation, which covers the 90 days that an employee can receive as 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.

Mr Dhanda has been approached for comment.

Ernst & Young, ISG’s administrators, declined to comment.