Employment judge awards 90 days’ pay to redundant staff

Staff made redundant after one of Newark’s largest firms went into administration last year have been awarded 90 days’ pay following an employment tribunal.

Morgan Tucker was placed in administration at the end of May, having sustained losses following an expansion into the Middle East.

The engineering firm was based in Newark but also had offices in Nottingham, Leeds, London and Oman.

A group of 46 employees has now been awarded payment after taking the case to an employment tribunal, held in Nottingham. The company employed a total of 65 people.

Employment judge Mr Peter Britton ruled there had been no forewarning and no consultation with staff when the workforce was dismissed on May 31, 2017.

A minority of 28 employees working at the Newark office was part of the group action.

In his ruling, Mr Britton said: “Given the complete absence of consultation and no mitigation put forward by administrators acting for Morgan Tucker Ltd, the appropriate award should be 90 days’ pay.”

The group was represented by Warwickshire-based employment law solicitors NuaLaw.

Miss Nuala Toner, the firm’s managing director, said: “We were very pleased that the employment judge decided to award all claimants the maximum compensation due to Morgan Tucker’s complete failure to undertake any consultation in advance of the dismissals.”

Since its inception in 2005, Morgan Tucker expanded to become an engineering consultancy providing services in highways, traffic and transportation, civil engineering design, structural engineering design, planning and environment, building services design, rail infrastructure and masterplanning.

'The only remaining option was to close the company'

Mr Phil Armstrong, partner at the administrators, specialist business advisory firm FRP Advisory LLP, said: “At the point of administration we explored options to sell all or parts of the business, but unfortunately a buyer could not be found.

“The cash position of the business was such that the only remaining option was to close the company, with all staff sadly being made redundant.”

Among the creditors following Morgan Tucker’s collapse was Newark and Sherwood District Council.

An administrator’s progress report, dated January 5, which is available on the Companies House website, said the council was unlikely to recover £241,095 it was owed from a loan issued to the firm in 2015.

The loan was made on the basis of a business plan showing a healthy profit margin and plans to grow the business.