Approximately 70% of employees at collapsed computer games company Realtime Worlds have still not received statutory redundancy pay it has emerged.
The company's administrators, Begbies Traynor, say they distributed applications to claim redundancy in August. Several affected employees have questioned this, however.
On top of the complaints about redundancy pay, around 120 former Realtime workers have banded together to pursue an employment tribunal claim for non-payment of their final month's salary.
The company also faces potential liability for failing to properly consult.
Speaking to the Sunday Herald, lead artist Tahir Rashid said: "They should have given everyone a 90-day consultation period. But [sixty employees] were given a 30-day consultation before they were made redundant on August 13 ... [and some] staff were only given an hour [on August 17]."
Dundee-based Realtime Worlds folded in August with debts of around £3m after the government decided to cancel a tax break for the gaming industry.
Jim Murphy, shadow secretary of state for Scotland, said: "The collapse of Realtime Worlds underlies the need to support the computer games industry better. I cannot understand why the government scrapped the tax relief scheme Labour announced in March.
"We need Dundee and the whole of Scotland to be a world leader in computer games."
Links:
- Former Realtime staff are still awaiting redundancy payments (Sunday Herald)
- Realtime Worlds games company goes into administration (BBC News)
- US firm buys Realtime Worlds project MyWorld (BBC News)
- Redundancy rights (Findlaw.co.uk)
- Redundancy law news (The Solicitor)
- Employment law Q&A (Community)
- Find an employment solicitor (Contact Law)
