Up to 1,500 former Thomas Cook staff could claim as much as £4,200 from the government’s Insolvency Service following an employment tribunal judgment.
The tribunal found against the travel giant, which collapsed in September 2019, over its failure to consult before making redundancies, according to the Transport Salaried Staffs’ Association (TSSA) travel trade union.
Employees who worked at Thomas Cook retail stores are not included in the judgment but will be addressed separately in an ongoing employment tribunal case.
More: Thomas Cook collapsed with £9bn of liabilities [December 19]
Thomas Cook liquidator pays out £18.4m in redundancy [October 19]
Thomas Cook went into liquidation with around 1,500 London, Manchester and Peterborough head office workers made redundant without any prior warning or consultation.
The tribunal awarded the maximum of 90 days’ pay for each of the affected employees, a move which means up to 1,500 other head office staff who worked in role levels 1-5 within UK retail central operations and retail support, contact centre, and corporate and group functions, may also be entitled to claim compensation.
The TSSA said Thomas Cook should have started a consultation process at least 45 days before making anyone redundant but it failed to do so.
Those covered by the judgment can seek up to eight weeks’ pay from the Insolvency Service, which guarantees some of the protective award compensation from the national insurance fund.
The Insolvency Service caps awards at £525 a week – the 2019 rate – meaning a former Thomas Cook employee could claim as much as £4,200 with payment expected within the coming weeks, according to the TSSA.
The union, with the help of specialist law firm Morrish Solicitors, secured the judgment against Thomas Cook for a protective award.
TSSA general secretary Manuel Cortes said: “This is very good news indeed, I’m delighted for our members and all those who were failed by both Thomas Cook and the government.
“Our union has fought for our members at Thomas Cook all the way – and this judgment shows we have been justified.
“Our members endured harsh treatment from the start, not only through the actions of the company, but at the hands of a government which failed to step in to save this cornerstone of our high streets when it made perfect sense to do so.
“Frankly, our members who worked at Thomas Cook deserve every penny they get from this award. Anyone not a member should join TSSA and get assistance with their claim.”
Morrish Solicitors partner Daniel Kindell said he was “delighted to have been able to secure the best possible result in this case for the TSSA and staff it represented”.
He added: “Unfortunately, time and again I see consultation obligations flouted in cases of insolvency, leaving staff unemployed at the drop of a hat.
“Such an approach should not go unchallenged. I hope the tribunal’s decision gives ex-employees of Thomas Cook some sense of justice.”
More: Thomas Cook collapsed with £9bn of liabilities [December 19]
Thomas Cook liquidator pays out £18.4m in redundancy [October 19]