Usdaw, the shopworkers’ union, is demanding a review of the law to protect workers in collapsed companies as the government faces a multimillion pound payout after the demise of Comet, the electrical goods retailer. The call comes as thousands of former employees of Comet could share nearly £25m after a tribunal ruled that the company and its administrator Deloitte failed to consult staff properly when nearly 7,000 people were made redundant in 2012. The Leeds employment tribunal awarded staff up to 90 days’ pay, ruling that staff were misinformed and some made redundant within hours of being consulted. The government, which has to pick up the tab for Comet’s failure to consult its employees under European legislation, is only obliged to pay the workers eight weeks’ worth of the compensation they are entitled to. About 2,800 workers took part in the legal action against Comet and if all of them are entitled to a payout the government’s bill could be at least £6m. However, it’s not clear how many of those workers will receive the compensation because of complex rules governing who can claim. At least 100 staff members who did not take part in the case will be entitled… Read full this story
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