Ex-employees poised to take legal action over the collapse of Caledonian Modular
Staff who have lost their jobs following the collapse of Caledonian Modular are considering taking legal action for compensation as it is alleged the company failed to consult with them before making redundancies.
The UK’s leading offsite building solution provider, Caledonian Modular, has now ceased trading and over 200 jobs are at risk.
The administration of the firm has prompted ex-staff to contact employment law specialists, Morrish Solicitors, to investigate allegations that the business failed to properly consult staff when making redundancies. This could result in legal action being brought to secure compensation known as a Protective Award for those affected.
Where 20 or more employees are made redundant at one workplace, a company is under an obligation to engage in an information and consultation process, which must start at least 30 days before the first redundancies are made. It is suggested Carlton-on-Trent-based Caledonian Modular didn’t start that process either at all, or in time and staff have been made redundant without any prior warning.
Daniel Kindell, partner and head of employment rights at Morrish Solicitors, said: “Sadly we’re seeing numerous cases of insolvency leading to mass redundancies and it’s a huge shock to those affected at a very difficult and uncertain time.
"Unfortunately, not all payments those employees are due can be recovered from the insolvent company.
"We have therefore already received enquiries from those who have been affected by the news and who are looking for support and other ways of recouping what has been lost.
"If a protective award claim is successful, such a claim could see them compensated by up to 90 days' gross pay, up to 8 weeks of which can be recovered from the National Insurance Fund, via the government’s Insolvency Service (subject to weekly pay limits).
"Regardless of whether a company is struggling financially, it still has a duty under employment law legislation to carry out an information and consultation process to warn staff at risk of redundancies. Where that does not happen, employees can bring a claim for a protective award and secure the compensation they deserve.”
Caledonian Modular specialises in the off-site construction of buildings for large-scale projects across the UK and has a 40-acre site.
The company's administration was registered with Companies House on Tuesday (March 8).
The Caledonian Modular website is currently down and an automated phone message states that the office is now closed.
The company has existed since 1964 and has been a market leader in constructing and then shipping modular building to be fixed together on construction sites. It has been a market leader in providing modular buildings to a number of industries including prisons and custody suites, hotels, schools and colleges, the military, residential and retail.
Morish Solicitors’ employment law team has helped thousands of former employees of insolvent companies recover compensation. It recently pursued successful cases against Bardsley Construction and Styles and Wood, amongst others and acted in high profile cases against Thomas Cook, Phones4u and Citylink.
Meanwhile, Hull-based Kubex UK Ltd, a bathroom pod manufacturer, would like to offer piece work to plasterboarders and tilers who have lost their jobs at Caledonian and also has several positions available within its factory.
Contact operations manager Annette Smith on 01482 211421 if interested.
