Former staff of high street fashion chain Peacocks have won £230,000 in a landmark case over redundancy pay.
More than ex-employee have won their year-long court battle against the retailer, headquartered in Cardiff, after an employment tribunal ruled that the company failed to properly consult over redundancies.
A judgement handed down by the Aberdeen Employment Tribunal confirmed that the employees involved in the legal challenge have won their right to claim up to eight weeks’ worth of pay, with a cap of £538 per week.
The total value of the claim is estimated to be in excess of £230,000 which is around £1,642 per worker.
Employing around 6,000 people, Peacocks went into administration in November 2020 after rescue deal talks broke down.
Following the company’s collapse, its staff turned to law firm Aticus Law to pursue a claim for a Protective Award.
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The award is a form of compensation up to 90 days’ gross pay awarded by an Employment Tribunal if an employer fails in its duties.
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Mohammed Balal of Aticus Law, who represented the ex-employees, said: “Companies do absolutely have a duty of care to employees even if they are struggling. Today’s judgement shows that Peacocks failed in that duty and thanks to the determination and persistence of our clients we have been able to hold the company accountable for that.”
Mr Balal explained that under the current employment law if a business is making more than 20 employees redundant at one establishment, they must follow the correct consultation process.
He said: “This judgement has come as a huge relief to the dozens of former staff who were made redundant from Peacocks when it collapsed almost 18 months ago - leaving many unemployed worried about money and uncertain about what the future had in store.”
Peacocks have been contacted for comment.