Over 600 former workers at collapsed Flaxby housebuilder Ilke Homes are taking joint legal action over job losses.
More than 1,000 people were made redundant when the firm, which was situated close to junction 47 of the A1, entered administration in July.
Manchester law firm Aticus Law said yesterday it was now acting on behalf of more than 600 ex-employees over the way the redundancy process was managed.
The claim will focus on whether the correct consultation process was followed, and whether ex-employees are eligible to claim for a protective award claim against the company.
Those involved could receive up to eight weeks’ worth of pay in compensation, with a cap of £643 per week.
Edward Judge, a partner at Aticus Law, said:
“The protective award is a vital safety net for so many families in fast-paced redundancy situations that often leave them with no source of income and absolutely no notice.
“However, many people don’t realise that 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.”
Former staff members have until September 4 to add their names to the schedule of claimants.
Mr Judge said:
“After this unfortunately we won’t be able to accept new applicants, as we will be doing all of the necessary work needed to submit the claim to ACAS.”
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Ilke Homes collapse: 80 staff at Flaxby housebuilder start legal action
More than 80 employees of Flaxby-based Ilke Homes are to take legal action against the firm after it entered administration.
The company appointed AlixPartners as administrators on Friday after it failed to find a buyer or new investment.
In a statement, the administrators said the move will see the immediate closure of the manufacturing facility in Flaxby and all site activities are to cease.
It added that a “significant majority” of the company’s 1,150 staff would be made redundant with only a small amount remaining to help oversee the administration process.
Today, Manchester-based law firm Aticus said it has been instructed by 80 staff members, 60 of whom are from Flaxby, to investigate concerns around how the redundancy process was managed.
It said this would involve whether ex-employees were eligible to claim for a protective award claim against the company.
Aticus said if its clients were able to successfully pursue a claim, those involved would receive up to eight weeks’ worth of pay in compensation, with a cap of £571 per week.
Edward Judge, partner at Aticus Law, 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 wellbeing.”
The firm is also currently representing around 100 staff of former Harrogate-firm Amvoc, which collapsed back in March.
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Collapsed Harrogate firm Amvoc set to enter administration
An insolvency firm has been appointed to handle the process of placing failed Harrogate firm Amvoc into administration.
Staff at the telemarketing firm were left shocked on Tuesday night when they received a late night email from chief executive Damian Brockway saying “all our offices are closed with effect from tonight”. It went on to blame “covid debts”.
Law firm Aticus Law has now been contacted by 145 former employees as it investigates the circumstances of the company’s collapse and concerns around how the redundancy process was managed, as well as whether ex-staff are eligible to claim for compensation.
Gareth Lewis, director of Leeds firm Lewis Business Recovery and Insolvency, said today it was handling the administration process.
He said:
“I can confirm that following the directors’ decision to make all employees redundant on Tuesday evening, this firm was engaged on Wednesday to assist with the process of placing the company into administration.
“It is anticipated that the company will be placed into administration in the coming days, and we are now collating all financial and employee information to enable us to perform our duties.
“We have contacted former employees through our agents IPERA, who will assist employees with the process of making their claims through the government’s Redundancy Payments Service”.
Founded in Dacre
Mr Brockway set up Amvoc, the trading name of A Marketing Vocation Ltd, from a small office in Dacre in 2010. It sold telemarketing services, initially in the legal sector, and grew rapidly, moving first to Pateley Bridge and then to large offices at New York Mills near Summerbridge.
It opened a new head office on Cardale Park in Harrogate in 2015, a facility in Leeds in 2018 and an office in Manchester in 2022. It also had plans to expand to London.
Amvoc’s clients included BP, Barclays, Virgin Media, Leeds Beckett University, and both the Conservative and Liberal Democrat parties.
Its website said it employed 450 staff but the Stray Ferret believes the figure at the time the company collapsed was under 300.
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We again attempted to contact Mr Brockway today. An immediate emailed response said:
“I regret to inform you that Amvoc has been forced to cease trading with immediate effect due to financial difficulties.
“We understand that this news may come as a shock to many of you, and we want to assure you that we are doing everything possible to manage the situation.
“We are in the process of contacting all our staff, clients and partners to inform them of the situation and provide any necessary information. We apologise for any inconvenience or disruption this may cause, and we are committed to minimising the impact on our stakeholders as much as possible.”
Almost 100 staff at failed Harrogate telemarketing company Amvoc are to take legal action over the way redundancies were managed.
The Stray Ferret revealed yesterday up to 450 people received an email at about 10pm on Tuesday night from chief executive Damian Brockway informing them the firm had ceased with immediate effect.
Mr Brockway said the company had entered administration and blamed “covid debts”.
Based at Cardale Park in Harrogate, Amvoc also has offices in Leeds and Manchester.
Within hours of the news breaking, employment law firm Aticus Law said it had been contacted by 91 people affected.
The firm said it was now in the early stages of investigating the circumstances of the company’s collapse and concerns around how the redundancy process was managed.
It was also looking into whether ex-employees were eligible to claim for a protective award claim against the company.
Aticus said if its clients were able to successfully pursue a claim, those involved would receive up to eight weeks’ worth of pay in compensation, with a cap of £571 per week.
The Manchester-based firm is currently representing over 130 ex-employees to bring a protective award claim against Made.com which entered into administration last year, around a dozen former employees of FlyBe, and more than 50 staff who lost their jobs when BritishVolt collapsed earlier this year.
Edward Judge, a founding partner at Aticus Law said:
“We have now been contacted by 91 individuals who say that they have been affected by job losses following the recent collapse of Amvoc.
“We are in the early stages of investigating those claims, and advising our clients on their options.”
“As is always the case with protective award claims, the individuals who have reached out to us for advice regarding their rights are understandably very anxious and concerned about what the future has in store for them.”
A protective award is compensation awarded by an employment tribunal if an employer fails in its duties.
Mr Judge added:
“The protective award is a vital safety net for so many families in fast-paced redundancy situations that often leave them with no source of income and absolutely no notice.
“However, many people don’t realise that 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.”
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Mr Brockway’s email to staff, seen by the Stray Ferret, said:
“We have appointed administrators with immediate effect who will now be responsible for paying wages this week and all outstanding bonuses.
“I am gutted. Words fail me.
“Unfortunately our covid debts were too high and repayments not high enough. We have been issued with immediate request to pay all outstanding within seven days which is impossible.
“I cannot tell you how upset this makes me.”