[UK] Ex-Wilko staff win £2m payout for redundancy failings

In the UK, nearly 10,000 former Wilko employees will receive a share of almost £2 million in compensation following an employment tribunal ruling, People Management reports.

The tribunal found that Wilko failed to meet its legal obligations during mass redundancies in 2023. 

The case, brought by the GMB union, reportedly centres on the collapsed high street chain’s failure to engage in a timely and meaningful consultation process with employees before it entered administration.

The tribunal found that Wilko breached section 188 of the Trade Union and Labour Relations (Consolidation) Act 1992 by failing to consult representatives of its workforce before issuing redundancy notices. This requirement applies when an employer proposes to dismiss 20 or more employees at one site within 90 days.

The ruling will see around 9,000 store workers receiving four days’ pay, while staff in distribution and support centres will receive 13 days’ pay. 

The compensation, known as a protective award, is far lower than the maximum of 90 days’ wages a tribunal can issue. It is, however, a clear criticism of the company’s failure to meet consultation standards.

Affected staff have reportedly welcomed the financial recognition, but it has not taken away the emotional toll. Former Wilko worker and union representative David Bartlett said, “It has been a long, hard slog getting this money – the very least Wilko workers deserve after the way they were treated.”

Mr Bartlett added that although the payout was a “much-needed boost”, it would not undo the trauma felt by staff who lost their jobs at such a turbulent time, “In no way will this make up for the stress and anxiety they faced during those dark days in 2023.” 

Source: People Management

(Quotes via original reporting)

In the UK, nearly 10,000 former Wilko employees will receive a share of almost £2 million in compensation following an employment tribunal ruling, People Management reports.

The tribunal found that Wilko failed to meet its legal obligations during mass redundancies in 2023. 

The case, brought by the GMB union, reportedly centres on the collapsed high street chain’s failure to engage in a timely and meaningful consultation process with employees before it entered administration.

The tribunal found that Wilko breached section 188 of the Trade Union and Labour Relations (Consolidation) Act 1992 by failing to consult representatives of its workforce before issuing redundancy notices. This requirement applies when an employer proposes to dismiss 20 or more employees at one site within 90 days.

The ruling will see around 9,000 store workers receiving four days’ pay, while staff in distribution and support centres will receive 13 days’ pay. 

The compensation, known as a protective award, is far lower than the maximum of 90 days’ wages a tribunal can issue. It is, however, a clear criticism of the company’s failure to meet consultation standards.

Affected staff have reportedly welcomed the financial recognition, but it has not taken away the emotional toll. Former Wilko worker and union representative David Bartlett said, “It has been a long, hard slog getting this money – the very least Wilko workers deserve after the way they were treated.”

Mr Bartlett added that although the payout was a “much-needed boost”, it would not undo the trauma felt by staff who lost their jobs at such a turbulent time, “In no way will this make up for the stress and anxiety they faced during those dark days in 2023.” 

Source: People Management

(Quotes via original reporting)