Debenhams’ staff win redundancy pay dispute

Over 400 former Debenhams staff have won a legal dispute over redundancy pay.

An Employment Tribunal judge ruled that Debenhams had “failed in its duty to consult with its staff” after it fell into administration in 2020.

The deal, which representing solicitor Simpson Millar said pertained to staff at the former Debenhams outlet on Oxford Street, means the 419 staff can be compensated by up to 90 days’ gross pay, capped at £4,304 given the retailer is insolvent.

Lawyer at Simpson Millar Amanda McKinley said: “We are delighted to have now received the first judgment in relation to the Protective Award claim on behalf of a significant number of our clients who were affected by redundancies when Debenhams entered into administration in 2020.

“In this case the employment tribunal Judge has ruled that the retailer failed in its duty under UK employment law legislation to carry out proper consultation with staff at risk of redundancies, and the outcome of the legal action now paves the way to secure a payout in the form of a protective award for our clients which is expected to be in the region of £860k.”

Simpson Millar is representing 475 additional former Debenhams staff who are bringing a Protective Award claim against Debenhams, with final judgments in process for these claimants.

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