Former workers of Atlas Caravans have won £1.5m in compensation claims after being made redundant by the company in December 2008. An employment tribunal on Friday decided that the Hull based Caravan manufacturer – now in the hands of administrators – acted unlawfully in its redundancy actions for 333 workers. The tribunal ruled that by law the workers required a 90 day paid period of consultation before any redundancy could take place. It was established that Atlas caravans acted unlawfully by not applying this.
The ruling means that every one of the redundant employees can now claim for this payment; partly off the administrators for the company, and partly off the Government insolvency fund. Each worker is therefore entitled to £4,550 of compensation. The first 8 weeks of pay will be paid by the Government scheme, meaning each worker is guaranteed £2,800. It is still unsure when the workers will receive the rest of their compensation, as they have to claim that off the administrators for the company. Atlas Caravans is reportedly £20m in debt. However, the trade union for the workers – UCATT – welcomes the decision calling it “a great victory for us in terms of getting justice for our members.”