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Ilke Homes staff to take legal action following modular house builder’s collapse
More than 80 former employees of Ilke Homes who lost their jobs when the modular house builder entered administration last week are taking legal action against the company.
Manchester-based Aticus Law has been instructed by more than 80 former Ilke employees to investigate concerns over how the redundancy process was managed, with a view to bringing a protective award claim on behalf of those affected.
Based in Flaxby, North Yorkshire, Ilke was employing more than 1,100 people when it appointed administrators on Friday 30 June, resulting in the closure of its manufacturing facility.
The administrators warned that “a significant majority” of staff would be made redundant with immediate effect, while a small number were retained to assist with the winding-up process.
According to Aticus, staff who were made redundant said they were sent home around two weeks ago with pay, but were made aware that the company was in trouble and that it was looking for a new investor.
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Last week, staff were called to a meeting, during which they were advised that they were being let go.
Aticus said it will now determine whether the former employees are eligible to claim for compensation awarded by an employment tribunal if an employer fails in its duties.
The firm said that if its clients are able to pursue a claim and are successful, those involved in the legal challenge will receive up to eight weeks’ worth of pay in compensation, with a cap of £571 per week.
Edward Judge, a partner at Aticus, said: “Further to the collapse of Ilke Homes, we have been instructed by more than 80 former employees who have lost their jobs and who are now looking to pursue a protective award against the company.
“While there are reports to suggest that the business will be bought out of administration, this does not prevent people who have already been made redundant from pursuing a claim even if they are offered their jobs back in due course.
“Of course, for many of our clients, that would be the ideal outcome, but the protective award is claimed because the redundancy process was not followed correctly, which of course has a short-term impact on a person’s financial well-being.
Mr Judge added: “You can only get a protective award payment if you are included as part of the claim and are listed as part of the schedule of claimants attached to the tribunal judgment.
“You can’t simply watch from the sidelines while ex-colleagues take the legal challenge forward. It’s important to make sure your name and specific job title is included.”
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