Former NMCN staff file challenge over redundancy process

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Former employees of the collapsed utilities specializer NMCN person taken the concern to tribunal implicit the handling of their redundancies.

The 26 employees of the £400m-turnover firm, which appointed administrators successful October, accidental the institution failed to consult with them astir the occupation losses. If they win astatine the employment tribunal, they could entree up to £4,352 each via the government's Insolvency Service.

Law steadfast Simpson Millar, which is representing the erstwhile staff, archetypal announced days aft NMCN's illness that it was preparing a ineligible case..

Simpson Millar employment lawyer Anita North said the employees were “taken wholly by surprise” erstwhile they were made redundant past year.

“Twenty-six ex-employees aboriginal instructed america to analyse the claims that NMCN had failed to decently consult implicit the occupation losses, and they person present officially taken their assertion to an employment tribunal to beryllium heard,” she added.

“We are present awaiting a day for a preliminary proceeding to instrumentality place.”

The individuals were each moving for NMCN’s gathering business, for which administrators astatine Grant Thornton failed to find a buyer, starring to the nonaccomplishment of 80 jobs. The administrators successfully sold the company's telecoms business and astir of its works and machinery to Svella, portion Galliford Try bought its h2o division and Keltbray Highways acquired parts of its infrastructure operations.

NMCN's illness made it the biggest operation casualty since Carillion went bust successful January 2018.

Construction News revealed successful October that nearly 2,400 unsecured creditors would suffer much than £60m owed to NMCN going under. In October, the Financial Reporting Council began its probe into NMCN's auditor, BDO.

NMCN was 1 of 23 companies that went into medication successful October – marking the highest monthly toll of concern failures successful 2021 and successful the aftermath of the archetypal coronavirus lockdown successful March 2020. That fig has since been eclipsed by the full for February this year, erstwhile 31 companies collapsed.

Restructuring specializer Blair Nimmo told CN at the clip that the assemblage was facing a "perfect storm" of rising worldly costs, immense wage inflation, HGV-driver shortages and planetary shipping issues. Many of these cost increases person continued to heap unit onto operation businesses successful the archetypal 4th of 2022.