Firm told to pay £500k to ex-staff

Dozens of former employees of a law firm which ceased trading have been awarded more than £500,000 following the loss of their jobs.

The 27 employees worked for The Foster Partnership which had branches in Herne Bay, Ramsgate, Rainham, Margate and Broadstairs.

Court papers published this month reveal the company had not provided a response in time and therefore the judge had made a ruling by default for each case.

The conveyancing company had links to many estate agents and developers at its peak but in 2018 the business was involved in controversy. Following an annual audit, the firm, which was based in Ramsgate and formed following a merger three years ago, was accused of accountancy errors. Its licence was revoked by the Council for Licensed Conveyancers (CLC). Documents registered with Companies House show a process to strike off the business is ongoing.

The regulator said at the time it had intervened due to the firm’s alleged conduct “and to protect the interests of the firm’s clients”.

As a result of the firm closing, 27 of the former employees made employment tribunal legal claims for redundancy, breach of contract and unlawful deductions from wages.

Now a tribunal judge for Kent has awarded the claimants a total of £513,463 following a series of individual hearings. The highest award of £53,032 went to Rashpal Kaur, including a protective award of £13,153. A protective award is normally made where employees complained they had been “kept in the dark” over what was happening to their jobs and where there had been no consultations in accordance with the Labour Relations and Trade Union Act. Branches in Ramsgate, Herne Bay, Margate and Broadstairs were visited by officers from the CLC in October and told to close. The Foster employees had been told to go home the day the firm shut down its website and most of the claimants were given protective awards.