This claim bought by employees of City Link highlights the difficulties insolvency practitioners and directors face in complying with the obligation to collectively inform and consult on proposed redundancies in situations where the company is in financial difficulties. City Link went into administration on Christmas Eve last year. The employees successfully argued that they were entitled to 8 weeks' pay each because City Link failed to follow the required minimum periods of consultation for redundancies before terminating their employment. This sum can potentially be claimed by all 2,500 employees that lost their jobs. As there is no automatic exception to the rules for companies in financial difficulties, this type of claim is something employers faced with making large numbers of redundancies quickly need to carefully consider.
Former City Link employees who worked at the Belfast depot have won an Industrial Tribunal claim over the company’s failure to properly consult.