Over 100 staff who worked at the telemarketing company Amvoc are to take legal action over the way redundancies were managed, amidst reports that the company has gone into administration.
Across the 3-sites, the business employed 450 staff.
Within hours of the news breaking, specialist employment law experts at Aticus Law say they had been contacted by over 100 people affected, including those based in Leeds and Manchester.
The firm says it is now in the early stages of investigating the circumstances of the company’s collapse and concerns around how the redundancy process was managed, as well as whether ex-employees are eligible to claim for a Protective Award claim against the company.
Aticus says that if their clients are able to pursue a claim and are successful, those involved in the legal challenge will receive up to eight weeks’ worth of pay in compensation, with a cap of £571 per week.
Commenting on the news and the potential legal action, Aticus Law said that while historically it would have taken several weeks for ex-employees to start legal action, increased awareness around workers’ rights means more people are better placed to reach out for help quickly.
The firm is currently representing over 130 ex-employees to bring a Protective Award claim against Made.com which entered into administration last year, around a dozen former employees of FlyBe, and more than 50 staff who lost their jobs when BritishVolt collapsed earlier this year.
Edward Judge from Aticus law said:
We have now been contacted by over 100 individuals who say that they have been affected by job losses following the recent collapse of Amvoc, and from what we understand they were told that they had lost their jobs through an email which was issued late on Tuesday night.
We are in the early stages of investigating those claims, and advising our clients on their options.
Sadly, the headlines are currently dominated by businesses in a number of different sectors that are struggling make a profit, and that of course has a significant impact on employees when the only option is to cease trading.
However, as has been highlighted time and time again, despite these companies being fully aware of their legal obligation to enter into fair consultation over redundancies, that process seems to be bypassed entirely on a regular basis.
Instead, staff are told that they have lost their jobs with immediate effect.
As is always the case with protective award claims, the individuals who have reached out to us for advice regarding their rights are understandably very anxious and concerned about what the future has in store for them.
Edward went on to explain that the firm is now investigating whether there are grounds to claim for a Protective Award, that is, compensation awarded by an Employment Tribunal if an employer fails in its duties.
Historically people were under the impression that when a business has collapsed there is nothing that can be done, however, this issue keeps hitting the headlines and, as a result, employees are far more familiar with their rights and their ability to hold the company accountable.
That means that when a company doesn’t act in the way that it should, they are far more likely to reach out for legal advice.
In this instance we have already been contacted by over 100 ex-Amvoc employees and are now in the early stages of investigating a Protective Award claim. Given the considerable number of people who were likely to be affected by the news of the company’s collapse, we expect that number to go up over the coming days and weeks.
The Protective Award is a vital safety net for so many families in fast-paced redundancy situations that often leave them with no source of income and absolutely no notice.
However, many people don’t realise that you can only get a Protective Award payment if you are included as part of the claim and are listed as part of the Schedule of Claimants attached to the Tribunal Judgment.
We can’t stress this enough. You can’t simply watch from the side-lines while ex-colleagues take the legal challenge forward. It’s important to make sure your name and specific job title is included.
We have tried to obtain comment from Amvoc, but our phone call was terminated.