MORE than 100 people who lost their jobs when Tomlinson’s Dairies went into administration last year have won their legal battle after a Judge ruled that it failed to properly consult staff when making redundancies.

Established in 1983 in Wrexham, the business won a significant contract with a major supermarket chain in 2017. However, a report by administrators PwC found that mounting debts and poor trading had contributed to its collapse in October 2019; leaving more than 300 workers out of work.

The Leader previously reported that the directors 'had no alternative' but to place the company into administration.

Following the company’s demise, a total of 108 former staff instructed employment law experts at Simpson Millar to pursue legal action on their behalf amidst claims that they were not consulted correctly over the redundancy process.

Now, almost two years on, the workers have won their legal battle against the business after a judge ruled that Tomlinson’s Dairies had failed to follow the correct procedure to carry out a proper consultation with staff at risk of redundancies.

Lawyers representing the workers say the value of the claim is now being calculated and is expected to be in the region of £400,000.

Damian Kelly, Head of Employment at Simpson Millar appeared before the Employment Tribunal Hearing in this case in order to secure the Judgment on behalf of the Tomlinson’s Dairies staff.

Mr Kelly said: “The collapse of Tomlinson’s Dairies was particularly difficult for its employees, many of whom had worked there for many years.

“While it’s often assumed that if a business goes into administration staff just have to accept their fate, in reality employers do still have a duty under current employment law legislation to carry out a proper consultation with anyone at risk of redundancies.

“When that law is disregarded, it can lead to an extremely difficult and distressing time for those affected – many of whom are left struggling financially, whilst also looking to secure a new role with little, if any, notice.

“In this instance, an employment tribunal judge ruled that Tomlinson’s Dairies had failed to follow the correct process, which left more than 100 individuals out of pocket.

“We are delighted with the outcome and to have been able to support our clients in order to access the justice that they deserve.”

The judgment now paves the way for a pay-out follows legal action carried out by leading employment law experts at Simpson Millar and comes in the form of a Protective Awards which have been claimed from the Redundancy Payments Service (RPS), which is part of the Government Insolvency Service.

The RPS is a government funded scheme set up to pay up employees up to a maximum of 8 weeks’ pay in the form of a protective award where an employer has become insolvent, and has been found not to have properly consulted with its employees over subsequent redundancies.

The RPS pays other funds owed to employees including redundancy pay, arrears of holiday pay and notice pay. However, while these claims can be made by an employee completing an online form, a claim for a Protective Award requires a formal Employment Tribunal Order.

Mr Kelly confirmed: “As a result of the employment tribunal judgments our clients will now be compensated by up to 90 days’ gross pay, albeit capped at £4,304 given that the company is insolvent.

“The National Insurance Fund which employees pay into is a lifebelt for many people who find themselves in such circumstances, and in this instance our clients are delighted that the matter is now coming to a close so that they can finally move forward with their lives.”

Simpson Millar’s leading employment law team is currently instructed by former employees affected by the collapse of a number of companies including Thomas Cook, Mothercare and Flybe.

Damian Kelly added: “The process to claim for a Protective Award does not result in an influx of cash immediately as a claim has to be brought to an Employment Tribunal which can take time.

“However, it is a legal safeguard that those affected by the lack of consultation should avail themselves of. We are passionate about pursuing a claim for a Protective Award in order to recover money in successful claims as this will provide some longer-term security for those affected.”