More than 80 ex-employees take legal action against Ilke Homes

More than 80 ex-Ilke Homes staff are taking legal action against their former employer claiming they were not properly consulted over job losses.

The modular housing manufacturer entered administration earlier this week, resulting in the majority of its 1,150 employees being made redundant with immediate effect.

Lawyers representing more than 80 former employees today confirmed the group will take legal action over how the redundancy process was managed.

Aticus Law said it had been instructed by more than 80 affected individuals, the majority of whom are workers who were located at the manufacturing site in Flaxby, north Yorkshire.

The law firm says it is now in the early stages of investigating concerns around how the redundancy process was managed.

Even though Ilke is in administration, a claimant can still obtain a tribunal judgement against the company with any ‘protective award’ initially paid by the insolvency service.

Ilke Homes was plunged into crisis at the start of June when investors told the company’s bosses they were pulling funding.

That decision prompted an immediate halt in production at Ilke’s factory and the start of an urgent sale process. At first Ilke said it had 15 interested bidders for the company.

The staff represented by Aticus Law say they were sent home around two weeks ago with pay, having been made aware that the company was in trouble and that it was looking for a new investor.  

>>See also: Ilke Homes goes into administration

>> See also What does the closure of L&G’s flagship factory mean for the future of modular in the UK?

Last week, the employees were called to a meeting and told they were being made redundant.

Employers must engage in a consultation process with employees who may be affected by redundancy, with the duration of the consultation period commensurate with the number of employees at risk of losing their jobs.

Where 100 or more employees are at risk of redundancy, the consultation period must last for at least 45 days.

Aticus Law says it will determine whether ex-employees are eligible to claim for a “protective award,” compensation awarded by an Employment Tribunal. If successful, eligible ex-employees could receive up to eight weeks’ pay, capped at £571 per week.

The payment of this type of compensation still depends on the financial situation of the former employer. However, if there are no funds remaining to pay the awards, there is a government fund those awarded protective compensation can apply to.

“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,” Edward Judge, a partner at Aticus law, said in a statement. 

“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.”  

Clare Kennedy, partner and managing director at AlixPartners, the appointed administrator for Ilke, said in a statement, “This is an incredibly difficult time for all associated with ilke Homes, and in particular its employees, who have worked tirelessly alongside management over recent months to find a resolution.”