Former Central Building Contractors worker wins compensation case

Former Central Building Contractors worker wins compensation case

CBC was placed into administration in April 2020

Stricken construction firm Central Building Contractors (CBC) has been ordered to pay compensation to a former member of staff after a tribunal found the company breached employment regulations.

The family-run company was placed into administration in April 2020 following years of “challenging trading conditions in the construction sector”, dismissing 149 employees immediately after its collapse.

An employment tribunal has now found that the firm breached employment regulations by dismissing staff within 90 days without consultation.

Former employee Jordan Kirk brought a case against the firm on the basis that CBC made employees redundant “without any procedure having been carried out”.

joint administrators confirmed by email to the tribunal that 149 employees had been dismissed “immediately”, in other words, with no process having been followed. It was, therefore, accepted by the tribunal that “there was no recognised trade union or elected representative and that no steps were taken to elect any such representatives nor to consult in relation to the dismissals (or otherwise)”.

CBC has been ordered to compensate Mr Kirk with a protective award for the “protected period of 90 days.”

The tribunal noted that no response was provided by the firm in the case.

Employment judge David Hoey said: “No consultation took place with any elected representative and no steps were taken to do so.

“No reasons were given for such a failure. The explanation of being unable to trade during administration does not explain why the rules were not followed.”

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