The Telegraph’s legal expert, Solicitor Advocate Frank Maguire of Thompsons Solicitors is an expert at winning compensation for clients in personal injury cases. This week he explains how some workers who lose their job when their employer goes burst without warning can still win compensation, even if their former employer has no funds to pay them.

What happens if the company you work for goes bust overnight and the first you know that there is a problem is when you turn up for work and find the gates locked against you?

Workers’ rights are protected by employment law, and when a company is wound up in normal circumstances the staff should be consulted and they have a right to redundancy pay.

There is an obligation on companies to give their employees a 30-90 day ‘consultation period’ prior to making them redundant.  This period of notice means that workers are less likely to book holidays, make expensive purchases and find alternative employment, knowing that trouble is ahead.

The consultation period also puts an obligation on employers to listen to solutions from employees to avoid the redundancy.  These could be in the form of pay cuts, cuts in hours or a way to run things more efficiently.

It used to be that this right was scoffed at and seen as merely token but it can be seen by the example of workers in the car industry some of whom agreed to a four month closure of their plant to keep their jobs, that this is a realistic option.

Groups of workers who have been affected by sudden loss of employment should contact an expert Solicitor. 

Thompsons is able to obtain compensation for groups of workers not afforded this ‘consultation period’.  Even if the company that has made the sudden job cuts is broke, compensation for not allowing the legal period for consultation can be claimed from the Government.

If you and your colleagues find have been affected in this way seek expert help.