Workers are set to take legal action
WORKERS at Triumph Furniture in Merthyr Tydfil are taking legal action after the company went into administration.
A number of former employees have alleged that the company did not properly consult staff when making the redundancies.
The family-run business, set up in 1946, which employed 252 people across two sites in Merthyr Tydfil, entered into administration on October 8 after being unable to reduce its operating costs.
Employment lawyers at Simpson Millar said they are now looking into taking legal action to secure a “protective award” for those affected.
Aneil Balgobin, from Simpson Millar, said if Triumph had failed in its legal obligation to undertake a “collective redundancy consultation” process, staff could be entitled to compensation.
He said: “This is no doubt a very upsetting and distressing time for the former employees of Triumph – many of whom have been with the company for many years, and now find themselves redundant with only a moment’s notice, and just a couple of months before Christmas.
“We have already received calls from several people who have been affected by the news, and who are looking to pursue a Protective Award which, if successful, will see them compensated by up to 90 days’ gross pay, albeit likely capped at £4,200 given the company’s administrative state. To be entitled to this, formal legal action must be brought against Triumph and an Employment Tribunal Judgment obtained which will rule on whether there was a failure by an employer to follow the correct procedure when making redundancies.”
The news comes after workers claimed they experienced “awful” conditions at the business. Footage shows water pouring through the roof at the premises in Merthyr, which workers claimed has worsened in recent weeks. They also claimed the roof had been leaking for a number of years.
Mr Balgobin said the speed at which they were contacted by staff showed an “increased awareness” of workers knowing their rights. He said: “Historically, people have assumed that if a business goes bust that’s it. The staff are out of a job, and there’s nothing that they can do about it. However, with so many large organisations entering administration, and high-profile cases such as Thomas Cook going into compulsory liquidation, there is an increased awareness amongst workers about what the correct, and indeed the incorrect, process is when making redundancies.
“Where business fail in their legal obligation staff do still have rights, and where an Employment Tribunal finds in the favour of the employees they will be able to access the funds via the Government Insolvency Service.”
Of the 239 jobs lost, 13 people are to be kept on to help with the administration process.
Andrew Jackson, chief executive of Triumph Furniture, said: “The family is devastated by this appalling outcome and are extremely concerned for the welfare of all Triumph employees and their families at this terrible time.
“The business has suffered a rapid and catastrophic collapse in orders since the middle of July, which has been impossible to recover from, despite every effort.
“All connected with the business over these years should be very proud of what has been achieved.”
A spokesman for Begbies Traynor, which is handling the administration, said: “The administrators are liaising with the Redundancy Payments Service regarding the payment of statutory entitlements to employees and will deal with any correspondence received in the appropriate manner in due course.
“It would not be appropriate for Begbies Traynor to comment further on matters of a legal nature.”