Thomas Cook – Are they ‘off the hook’ to their employees?

This morning saw the demise of yet another iconic British tour operator and airline; Thomas Cook. Thomas Cook has ceased trading with immediate effect and with the loss of 22,000 jobs; 9,000 of which are based in the UK.

Those employees made redundant as a result may be entitled to unpaid wages, statutory holiday and notice pay, and, if they have been employed for 2 or more years, a statutory redundancy payment.

Thomas Cook’s employees were made redundant with no notice or formal consultation. In these circumstances, each individual employee may be entitled to claim 90 days’ actual gross pay through the Company’s failure to inform and consult over a collective redundancy. An employer is required to consult on a collective redundancy if there are proposals to make 20 or more individuals redundant within a 90 day period. Additionally, employees with 2 or more years’ service will have the ability to pursue unfair dismissal claims, although any loss of earnings in this regard would be limited to the length of time it would have been necessary to carry out the collective consultation; 45 days.

Given the financial state of the tour operator, it is unlikely that there will be funds to pay all or any of these entitlements to their employees. Where an employer is insolvent and cannot meet these liabilities, individuals are able to reclaim the same from the Government’s Insolvency Service.

The Insolvency Service will not pay out any awards connected with Thomas Cook’s failure to collectively consult and/or unfair dismissal claims. These payments will need to be pursued in the Employment Tribunal and recovery of the same will depend on the Company’s finances at the time any award is made.

For specialist advice on redundancy consultations and entitlements or on any other employment law matter, please contact our Coventry based Employment Law Solicitors:

Email: Lianne@askewslegal.co / Jake@askewslegal.co