Dozens of staff affected by the collapse of the major construction firm Tolent are to take legal action over the way redundancies were managed, after learning on in a companywide meeting early on Monday morning that they had lost their jobs.

Based on Gateshead's Team Valley, the company has reportedly made more than 300 people redundant with immediate effect. A further 91 jobs are said to have been retained during the administration process.

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​The news leaves millions of pounds worth of schemes across the region in the balance, including the £85.5m Milburngate project in Durham and, the £41.4m Vaux housing development on the banks of the River Wear in Sunderland, and a £5.4m regeneration of Bedlington Town Centre in Northumberland.

Following the news specialist employment law experts at Aticus Law say they have already been contacted by dozens of people affected, including staff working across the company’s Leeds, Stockton and Gateshead offices.

The firm says it is now in the early stages of investigating concerns around how the redundancy process was managed, and whether ex-employees are eligible to claim for a Protective Award claim against the construction company.

If they pursue a claim and are successful, those involved in the legal challenge will receive up to eight weeks’ worth of pay in compensation, with a cap of £571 per week.

Join administrator James Lumb has lready said: “Our priority in the coming days is to work with key stakeholders to assess options for each of the Companies, including options for ongoing contracts and live projects.

“We will also be providing support to those employees who have been impacted by redundancy, including providing them with the guidance and information they need to be able to make claims from the Redundancy Payments Office.”

Edward Judge from Aticus Law said increased awareness around workers’ rights means more people are prepared to challenge ‘poor employer behaviour’.

 

The Northern Echo: company has reportedly made more than 300 people redundant with immediate effect. company has reportedly made more than 300 people redundant with immediate effect. (Image: Newsquest)

Edward said: “We have now been contacted by a number of individuals who have been affected by job losses following the recent collapse of Tolent, and from what we understand they were told that they had lost their jobs during a companywide meeting.

“Sadly, in the current climate it’s not unusual to read about businesses in a number of different sectors that are struggling make a profit, and that of course has a significant impact on employees when the only option is to cease trading.

“However, what is worrying is that despite these companies being fully aware of their legal obligation to enter into fair consultation over redundancies, that process seems to be bypassed entirely time and time again.

“Instead, staff are told that they have lost their jobs with immediate effect.

“The individuals who have reached out to us for advice regarding their rights are understandably very anxious and concerned about what the future has in store for them.”

 

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Edward went on to explain that the firm is now investigating whether there are grounds to claim for a Protective Award, that is, compensation awarded by an Employment Tribunal if an employer fails in its duties.

​“In this instance we have already been contacted by over 30 ex-Tolent employees and are now in the early stages of investigating a Protective Award claim. Given the number of people who were affected by the news of the company’s collapse, we expect that number to go up considerably over the coming days and weeks.”