SSB: No consultation before staff made redundant
An employment tribunal has made protective awards in favour of another 82 former staff at SSB Group, after they were made redundant without consultation.
It follows an identical award made by the same judge, Employment Judge Lancaster in Leeds, earlier in the summer in favour of nine ex-SSB employees.
He said each employee were entitled to an award for a period of 90 days beginning on 29 November 2023, when the first redundancy took place.
Nearly 200 staff were made redundant after SSB formally went into administration in January, owing six litigation funders £200m.
A protective award is compensation of between 45 and 90 days’ pay that can be awarded where more than 20 employees are made redundant from one location within specific time frames and without consultation.
If the former employer is insolvent, the National Insurance Fund will pay the award, but the amount is capped at eight weeks’ pay.
Judge Lancaster said it was clear from the evidence that the employees met the criteria for a protective award.
“There has been no response submitted on behalf of [SSB], and therefore no explanation offered for the failure to consult even though it is apparent from ye papers that the business was in financial difficulties from at least about September 2023.
“It is therefore just and equitable to make the awards for the maximum 90 day period (though it is acknowledged that under the relevant legislation [Insolvency Service] will not be obliged to make payment for that full period).”
Five of the employees were representing themselves, with Leeds firm Morrish & Co acting for the rest.
There has been a similar mass award in favour of former staff at Axiom Ince, again for being made redundant without consultation.
Employment Judge Nicolle consolidated various group and individual claims against the now-defunct firm solely in relation to their entitlement to protective awards, stressing that his decision did not compromise their ability to pursue claims in respect of any other matter.
Judge Nicolle ordered that they receive the full 90 days as well.
Axiom Ince closed on 3 October 2023 after the Solicitors Regulation Authority shut it down, with the redundances taking place between then and 31 October.
The judge found that all of the claimants were dismissed without any consultation with appropriate employee representatives and with a failure to provide information about the proposed redundancies in writing prior to their dismissal, in breach of section 188 of the Trade Union Labour Relations (Consolidation) Act 1992.
The decision is not clear because the list of 10 offices from where 357 staff referred to in the ruling were made redundant included several where there were fewer than 20 employees.
Leeds (152 redundancies) and the City of London (134) the two were the largest offices; these were previously the headquarters of Plexus Law and Ince Group respectively.
There have already been other rulings on individual claims which have seen some substantial awards for redundancy pay, notice pay, unpaid wages and holiday pay – more than £20,000 in one case – but three also featured decisions not to make protective awards because the staff concerned were based in the Manchester office, where there were fewer than 20 staff.
Alan Lewis, a partner at Manchester firm Pearson Solicitors, said that, as far as he was aware, the judgment just related to the 154 staff members he represents, all of whom were made redundant from offices with more than 20 staff.
Axiom Ince’s administrators did not take part in the proceedings but confirmed that any shortfall in payments from the National Insurance Fund will rank as unsecured claims in the administration.
Does this history raise an issue for the SRA when closing a practice if the closure triggers a claim?