Ex-House by Urban Splash workers plot legal action
Staff who lost their jobs as a result of the Manchester-based modular housing business being placed into administration could be entitled to compensation if it is found that directors did not properly consult them before the company collapsed.
Some of those affected by the demise of House by Urban Splash – which was demerged from Urban Splash in 2019 – have begun the process of taking legal action, according to law firm Simpson Millar.
The staff could be eligible for compensation from the Government Insolvency Service amid allegations that directors did not follow the correct protocol when making workers redundant.
It has been reported that the 160 staff who lost their jobs were informed of House’s collapse via a company-wide Teams call, Simpson Millar 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 redundancy,” said Anita North, an employment law expert at Simpson Millar.
Simpson Millar said it has been contacted by several former House by Urban Splash workers since the news of the company’s collapse broke last week.
The law firm’s specialist employment team has now begun looking into whether a Protective Award can be secured for those affected.
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.
Where an employment tribunal finds in the favour of the employees, they will be able to access up to £4,568 via the Government Insolvency Service.
“News that House had gone into administration will have no doubt caused much concern for its employees,” North said.
“We have since spoken to a number of people who have been directly affected as a result of job losses at the company’s Derbyshire factory, and we are in the early stages of investigating whether more should have done to consult with staff.”
Teneo, the company appointed to preside over House by Urban Splash’s administration, declined to comment.