Ex-Multiyork Employees Receive £300k Payout following Legal Action

27th June 2019

More than 100 former Multiyork employees made redundant when the business collapsed in 2017 have received a payout of around £300,000 after an Employment Tribunal judged that the company had failed in its duty to its staff.

A furniture retailer based in Norfolk, Multiyork operated out of its factory in Thetford and boasted around 50 stores across the country before its demise in 2017.

The business was said to have employed in excess of 500 people when it went into administration amidst difficult trading conditions; many of whom were made redundant despite news that DFS Furniture had bought a number of store leases and other assets from its failed rival.

Now, more than 18 months on, 103 former employees who were based at the company’s Thetford factory have received payments totalling just under £300,000 after an Employment Tribunal found that Multiyork had failed in its legal obligation to its staff during the ‘redundancy consultation period’.

The payout follows legal action carried out by Employment Law Solicitors at national law firm Simpson Millar and comes in the form of a Protective Award from the UK National Insurance Fund – a UK government scheme set up to cover the losses incurred by an employee where an employer is insolvent.

Craig Hollingdrake, a Partner and Employment Solicitor at Simpson Millar said, “Protective Award is an award of compensation of up to 90 days' gross pay that can be awarded by an Employment Tribunal for failure by an employer to follow the correct procedure when making redundancies.

“The law with regards consultation periods is quite clear, and when that law is disregarded it can lead to an extremely difficult and distressing time for those affected – many of whom are left struggling financially, whilst also looking to secure a new role with little, if any, notice.

“The National Insurance Fund is a lifebelt for many people who find themselves in such circumstances, and in this instance, our clients are delighted that the matter is now coming to a close so that they can finally move forward with their lives.”

Simpson Millar's team of Employment Solicitors have successfully brought legal action on behalf of former employees of multiple failed businesses affected by a failure to consult; including BHS head office staff, and others working for airline BMI, luxury homemade mobile phone retailer Vertu, and Canute Haulage Group.

For more information see Protective Award Claims.

For free initial legal advice call our Employment Solicitors

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