Thomas Cook Redundancy Payout Victory

As an employment lawyer and partner at Leeds-based Morrish Solicitors, I unfortunately see the long-lasting effects that employment issues can have on people and their families. That’s why we have worked alongside Trade Unions and Associations for over 70 years, to help serve people, and not large corporations.

Our team recently worked with TSSA to secure an employment tribunal judgment against Thomas Cook. The travel firm failed to inform and consult before making redundancies, meaning up to 1,500 of their former employees could claim as much as £4,200 from the Insolvency Service.

Thomas Cook went into liquidation on 23 September 2019 with around 1,500 London, Manchester and Peterborough Head Office employees being made redundant without any warning or consultation.

Legally, Thomas Cook should have started a consultation process with TSSA at least 45 days before making anyone redundant. The company failed to do so, instead making staff redundant with immediate effect.

Working with TSSA, our team at Morrish Solicitors secured the judgment against Thomas Cook for a protective award. The tribunal awarded the maximum of 90 days’ pay for each of the affected employees, a move that means up to 1,500 Head Office employees who worked in role levels 1-5 within UK retail central operations and retail support, contact centre, and corporate and group functions, may be entitled to claim compensation.

Those covered by the judgment can seek up to eight weeks’ pay from the government’s Insolvency Service, which guarantees some of the protective award compensation from the national insurance fund. The Insolvency Service caps awards at a statutory weekly rate, but it means that a former Thomas Cook employee could claim in the region of £4,000+.

Manuel Cortes, TSSA General Secretary, described the win as “very good news indeed”.

“Our members endured harsh treatment from the start, not only through the actions of the company, but at the hands of a government which failed to step in to save this cornerstone of our high streets when it made perfect sense to do so.

“Frankly, our members who worked at Thomas Cook deserve every penny they get from this award. Anyone not a member should join TSSA and get assistance with their claim,” he added.

Personally, I’m delighted to have been able to secure the best possible result in this case for TSSA and the staff it represented. Unfortunately, time and again I see consultation obligations flouted in cases of insolvency, leaving staff unemployed at the drop of a hat. Such an approach should not go unchallenged. I hope the tribunal’s decision gives ex-employees of Thomas Cook some sense of justice.

If you have been affected by an employment issue, our Employment Rights team are well-placed to assist with a wide variety of employment law claims. Our breadth of experience means we can assist with a wide range of matters including redundancy, employment rights, unfair dismissal and protective awards.

For more information, please visit www.morrishsolcitors.com or call 033 3344 9600.