Airdrie & Coatbridge Advertiser
New cash hope for TOM staff
Concerns over administration process
Staff facing redundancy at doomed Airdrie company TOM Vehicle Rental could be in line for a hefty chunk of compensation following concerns raised over its administration process.
Legal firm Thompsons Solicitors has told the Advertiser that the workforce of more than 100 may each be entitled to eight weeks’ pay due to a lack of consultation about their employers’ decision to cease trading.
The Glasgow-based lawyers have been contacted by “around 90” of the local TOM employees and are encouraging more to come forward.
Priya Cunningham, a solicitor with Thompsons’ employment team, said: “Employers have a legal obligation to consult with staff if they are pursuing redundancies.
“There should be at least 45 days’ notice for staff that the company is intending to enter administration – the TOM employees were given no notice whatsoever.
“Financial ruin doesn’t just happen overnight. TOM should have had representatives discussing the situation with staff or done so through a trade union.
“The firm also should have had discussions on how to avoid redundancies, such as offering staff voluntary redundancies or reduced hours to lower the wage bill.
“None of these things have happened at TOM and, as a result, the employees being made redundant are entitled to claim for eight weeks’ pay.
“Not telling the staff about the situation until the decisions were made hindered their options, in terms of pursuing other jobs etc.”
Stunned TOM staff received the bombshell news that the 27-year-old business was closing its doors during a meeting with bosses late last month.
Back in January, Thompsons Solicitors helped around 75 employees of Glasgow-based landscaping firm Land Engineering ( Scotland) Ltd secure a share of £250,000 compensation after they were made redundant with less than a day’s notice.
Priya said: “Most people don’t know what their rights are as many have never been in a redundancy situation before.
“Administrators will have written to the staff at TOM to say they are entitled to back pay and holiday pay, but not this potential eight weeks’ pay award.
“The government don’t go out of their way to make people aware of this right either, so we do everything we can to highlight it.”
In an attempt to further highlight the potential for compensation to TOM staff, Thompsons Solicitors held a public meeting at 101 Park Street in Coatbridge as the Advertiser went to press yesterday afternoon.
Priya said: “We’ve been contacted by around 90 TOM employees thus far, including one gentleman I spoke to who had 19 years’ service with the firm.
“There has been a massive response with our phones off the hook, but we felt it was important to hold a public meeting in Monklands to speak face-to-face with those affected.
“The news TOM was ceasing its trading and going into administration was a huge shock to everyone we’ve spoken with.
“A few of the employees have claimed they had suspicions that the administrators had been in the workplace months ago.”
Priya added: “There is a legal process for the TOM employees to take any compensation claim to court and the next step is for us to contact the Advisory, Conciliation and Arbitration Service (ACAS).
“Any claims are then entered into an employment tribunal, where the employees can claim the money from the insolvency service.
“Employment tribunals have strict time limits and any claims must be made within three months of dismissal, so people need to get the process going quickly.”
A spokesperson for TOM administrators Ernst & Young said: “Ernst & Young has been working for the lenders of TOM Group Limited since February to assess options for the business.”
There should be at lease 45 days’ notice for staff the company is attending to enter administration Priya Cunningham