Failing to Follow the ACAS Code Cost the Employer!

Former employees of a bakery business that ceased trading last year have been awarded £40,000 after the company misled them about their job security. Five former staff made claims because they were not informed about the upcoming closure and were surprised to find they were no longer employed. The Birmingham Employment Tribunal heard the case and was told that one claimant turned up to work to find the premises closed because of non-payment of rent.

The judge concluded that the business failed to comply with “any of the standards of good industrial practise” and as well as awarding the employees a basic and compensatory award, made a 25% uplift of the sums they were awarded because the employer failed to follow the ACAS Code of Practice.

The employer knew the business was in difficulty and failed to speak to the employees and warn them of the likely redundancy, claiming ignorance of the law as their defence.