BGL Contracts Ltd, a Glasgow-based electrical fit-out contractor providing subcontracting services to clients across the leisure, hospitality, automotive and retail sectors, entered administration earlier this month.

Joint administrators from Interpath Advisory were appointed to oversee the process after the business experienced financial difficulties.

Employment specialists at Pearson Solicitors and Financial Advisers have already received more than 35 enquiries from former employees and are now being formally instructed to pursue a protective award claim on behalf of a number of those affected.

Around 40 employees were made redundant when the company entered administration, with 32 former employees having already confirmed instructions to join the claim. That number is expected to increase.

Former employees have reported receiving no prior warning or collective consultation before being dismissed. Partner and Head of Employment Law, Alan Lewis, is working with former employees to prepare the legal proceedings on the basis that he believes the statutory collective consultation obligations were not met.

Protective award claims are separate from statutory redundancy pay, notice pay and arrears of wages. Many employees are unaware they may be entitled to additional compensation following a redundancy situation.

If successful, affected employees could receive compensation of up to 180 days’ gross pay.

Alan Lewis said: “We have already received more than 35 enquiries from former BGL Contracts employees and have now been instructed by 32 individuals to pursue a protective award claim on their behalf. We expect that number to continue to rise in the coming days.

“Where 20 or more employees are made redundant at one establishment within a 90-day period, employers have a legal duty to undertake a collective consultation process with employee representatives. If that process has not been carried out correctly, employees will have grounds to pursue a protective award claim.

“A number of former employees have told us they received no advance warning or consultation before being made redundant. 

“When a business enters administration, employees are understandably focused on securing redundancy payments and finding new employment. As a result, many are unaware they may also have a separate claim for additional compensation.

“Although BGL Contracts has entered administration, employees may still be able to recover protective award compensation. In many cases, qualifying payments can be met through the National Insurance Fund, meaning insolvency does not prevent employees from bringing a claim.

“There are strict time limits for bringing Employment Tribunal claims, so anyone affected should seek legal advice as soon as possible.”

The firm is urging former employees to seek advice promptly, as Employment Tribunal claims for protective awards must generally be submitted within three months less one day from the date employment ended.

Anyone employed by BGL Contracts Ltd who was made redundant following the appointment of administrators is encouraged to contact Pearson Solicitors to discuss their circumstances.