Former Beaumont Morgan staff to launch legal claim

Aaron Morby 5 months ago
Share

Staff affected by the collapse of Manchester-based contractor Beaumont Morgan Developments are aiming to take legal action claiming the management failed to properly consult staff during the redundancy process.   

The £47m turnover contractor – a construction delivery partner of Fortis Developments – collapsed three weeks ago blaming the pandemic and the inflationary cost pressures.  

Manchester law firm Simpson Millar has been contacted by several former workers who claim they were not consulted over the job losses.

Its specialist employment team has now begun investigations into whether a protective award can be secured for those affected.

 

News of a potential claim comes as around 60 staff made redundant following the collapse of another builder, Midas Group, also look to pursue legal action against their former employer. 

Where an employment tribunal finds in the favour of the employees, they will be able to access the funds of up to £4,352 through the Government Insolvency Service.  

The firm has also urged those affected to take action if they too would like to be involved in the legal action, as ex-employees have just three months less one day from when they were made redundant to make a claim.  

Anita North, an employment law expert at Simpson Millar, said: “Over the past few days we have spoken to a growing number of people who have been directly affected as a result of job losses, and are in the early stages of investigating whether more should have done to consult with staff.

She said: “Regardless of whether a company is struggling financially, it does have a duty under current employment law legislation to carry out a proper consultation with staff at risk of redundancies. Where that does not happen, employees can bring a claim for a protective award.”    

A Protective Award is a payment awarded by an employment tribunal in cases where an employer fails to follow the correct procedure when making 20 or more redundancies 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.    

 

Latest news

Leisure centre legal battle ends 15 years after handover

Allenbuild ordered to pay £2.2m to Sefton Council over defective swimming pool
1 day ago

Morgan Sindall Highways chief departs

Paul Gott exits after 15 years at Morgan Sindall Infrastructure
7 hours ago

Balfour Beatty calls on supply chain to sign-up to Code of Ethics

Code of Ethics will eventually form part of Balfour Beatty contracts and supplier frameworks
7 hours ago

Tolent suffers £4.3m loss after High Street Group collapse hit

Gateshead builder says it returned to profit this year and is eyeing a £1bn work pipeline
6 hours ago

Persimmon build rates fall amid material and labour shortages

Planning delays also hit house builder as completions drop on last year
6 hours ago

Thirty construction workers killed on site last year

Industry fatality numbers drop 25% on previous year
17 hours ago

Construction and housing ministers resign

Industry leaders join mass exodus from government
21 hours ago

Aecom hires Arcadis veteran to grow northwards

Jonathan Moore aims to expand Aecom's business in the Midlands and North
20 hours ago

M&E contractor Kershaw went down owing subbies £10m

More than 400 firms left holding unpaid invoices
1 day ago

Green light for UK’s first plastic recycling park

£165m park in Cheshire will recycle 367,500 tonnes of plastic
1 day ago

Go-ahead for two Tilbury Douglas hospital jobs

Wirrall and Stockport hospital A&E jobs together worth nearly £60m
1 day ago

Nine contractors trailblaze concrete carbon reduction plan

Firms pledge to switch to 30% low emission concrete by 2025
2 days ago

Red Construction lands London Victoria office overhaul

St James's Park building will be extended up by two floors in overhaul
1 day ago

Six locations shortlisted for Great British Railways HQ

Site for national HQ narrows to Birmingham, Crewe, Derby, Doncaster, Newcastle and York
2 days ago

Kit maker Genie fined after M25 work platform death fall

Court hears how calibration error led to death of worker when 40 metre high mobile elevating work platform collapsed
2 days ago

O’Connor Utilities sold to private equity

OCU Group reported to have fetched around £400m
3 days ago

Rolls-Royce shortlists sites for first SMR factory

Three factories will make reactor, civils and MEP modules for SMR nuclear power stations
2 days ago

£233m loan kick starts £3.5bn regen of Royal Docks site

Infrastructure loan paves way for 6,000-home East London Silvertown scheme
2 days ago

Henry Construction wins £33m Oxford housing estate rebuild

Contractor signs off first deal with A2Dominion
2 days ago

Carillion collapse hospital hit by more construction delays

Balfour will take another 18 months to complete Midland Met scheme
3 days ago

Leeds college launches new construction and football course

Students can now combine site and tech skills with learning at a football academy
2 days ago

Willmott Dixon blasts new Building Safety law

Rick Willmott accuses Government of scapegoating construction over its own regulatory failure
3 days ago

£550m plan to redevelop The Galleries centre in Bristol

Shopping centre building to be demolished for major mixed-use scheme
3 days ago

Costain cancels supply chain event on £260m road job

Preparation work for A1 upgrade stalls as Transport Secretary dithers over approval
3 days ago

£170m London Holborn Circus office approved

Demolition work set to start in the autumn for 10-storey office block
3 days ago

City leaders launch net zero construction skills drive

City of London leader warns "skills gap and labour shortage are threats to our net zero ambitions"
3 days ago

Marlborough Highways lands £32m Islington civils deal

Contractor to help with north London borough's green drive
3 days ago

Osborne makes £45m construction loss

Sale of infrastructure business balances books as contractor looks for zero-carbon wins
6 days ago

John F Hunt forecasts record revenue and profits this year

Demolition contractor back on strong financial footing after previously setting aside £5.6m for bid rigging probe
6 days ago

Notting Hill Genesis names £2.8bn framework winners

26 firms land places on main contractor deal: Full list
6 days ago

Contractor services