Tayside Aviation failed to follow correct redundancy procedures as the company went into administration last year, an employment tribunal has ruled.
A group of 17 workers, who were dismissed by the Dundee flight school, on April 20 last year, have been awarded the maximum amount possible by employment judge Ian McFatridge.
He found Tayside Aviation failed to comply with its obligations to consult with employees prior to them being dismissed.
It also failed to make arrangements for appropriate employee representatives to be elected as part of the process.
The workers were awarded 90 days of pay under the protective award.
What did Tayside Aviation employment tribunal hear?
Evidence was given by one of the former workers, Geoffrey Sloan, who was found to be an “eminently credible and reliable” witness.
The tribunal judgement states: “Just before the usual finishing time on April 20 employees who were in the respondent’s premises were told to go to the conference room for a meeting.
“Once they were assembled there the respondent’s previous finance director came in accompanied by two individuals he introduced as administrators.
“Those present were advised that the company had gone into administration and would be closing its operations. They were advised that all of their employments were terminated herewith.
“None of the claimants had received any prior notice that redundancies were in contemplation.
“No attempt was made to elect employee representatives in any way or to choose appropriate representatives. The claimants left the premises on 20 April and did not return.”
What did Tayside Aviation and administrators say?
Under the Trade Union and Labour Relations (Consolidation) Act 1992, when 20 or more staff are being made redundant, there is a duty for employers to consult.
Although only 17 workers brought the tribunal case, administrators Interpath admitted that a total of 22 staff were dismissed.
The administrators declined to comment on the case when approached by The Courier.
The judgement said: “The administrators submitted a response in which they accepted that they had been appointed administrators on April 20, 2023 and had immediately dismissed 22 employees on that date. They stated there had been no consultation.
“They stated that three employees had been kept on. One had been dismissed on April 28 and the two remaining employees had been dismissed on June 13, 2023.
“It was their position that there had been ongoing consultation in respect of the other three employees.”
Tayside Aviation was not represented at the hearing. Former owner Tony Banks declined to comment.
Will workers ever see the money?
The Tayside Aviation administrators are in the process of selling the company’s assets to raise funds to be distributed to creditors.
The most recent administrator’s report said it had raised almost £500,000 so far by selling 10 planes.
Workers due wages and holiday pay are treated as a preferential creditor and expected to receive this money in full.
However, money due under the tribunal judgement is not treated in the same way. It is treated as an unsecured debt, similar to suppliers owed money.
From the funds raised, preferential creditors and secured creditors will be paid first. Royal Bank of Scotland is owed £32,300, HMRC is due £4,821 and Tony Banks is owed £110,000.
It is expected there will be a small dividend to unsecured creditors, but with total company debts of around £2.5 million, this will be a proportion of what is due.
However, the UK Government guarantees up to eight weeks (56 days) of any protective award made.
In effect, the workers will get 56 days of pay in full from the government and a proportion of the remaining 34 days of the tribunal award as an unsecured creditor.
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