When Borders went into administration in December 2009, more than 230 employees lost their jobs but were not given proper consultation rights.
The employees took the company to an employment tribunal hearing and have been awarded the maximum 90 days’ pay.
The tribunal found that Borders had not correctly complied with employment legislation. When a company makes collective redundancies, there is a strict procedure they must follow.
If the procedure is not adhered to, employees are within their rights to go to an employment tribunal to seek compensation.
The Borders ex-employees were awarded 90 days’ pay, which is the maximum amount that can be received.
But since Borders had no money after going into administration, they were unable to pay. The ex-employees’ compensation came out of state funds.
Payments from the state must be capped at £400 per week for up to eight weeks. This meant that some of the ex-employees did not receive all the wages owed to them.
Paul Lee, national officer of the Retail Book Association, said: “It was the weeks before Christmas and [Borders] didn’t want staff being distracted by the correct consultation procedures.”
So the company made a final drive to boost pre-Christmas sales at the expense of their staff.
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