Thomas Cook Collapses, So What Happens To Staff & Their Wages? Around 600,000 Thomas Cook holidaymakers, 150,000 who traveled from Britain, have been left stranded after the company went into liquidation on Sunday 22nd September. The UK’s Civil Aviation Authority (CAA) said Thomas Cook had now ceased trading and the regulator and government would work together to bring the more than 150,000 British customers home over the next two weeks, costing the UK £60m.
So now 21,000 employees worldwide are without a job and salary, what can they do to re-coup some of the wages? We spoke to Liam Grime, employment law advisor at ELAS:
“Now that it’s been confirmed that Thomas Cook Group Plc have gone into compulsory liquidation, the 9,000 UK employees, and many others around the globe, are out of a job by way of redundancy.
“As with any redundancy situation, should an employee have more than two years’ continuous employment under their belt, they are entitled to receive a redundancy payment, along with payment for any holidays that they have accrued but not used up until the date their employment terminated and a notice payment. Employees with less than two years’ continuous service are also entitled to the latter two payments.
“However, in the case of a company going into compulsory liquidation the chances of the company being able to provide you with these payments are slim to none and in such circumstances, the company’s employees not only have the stresses that come with having to find other employment, but also the inconvenience of having to apply to the Redundancy Payments Office, part of The Insolvency Service, to seek what they are owed in the form of compensation from the government.
“It is the responsibility of the appointed liquidator to inform employees of their rights and to provide the appropriate forms for claims to be made for compensation, however the RP1 form employees require can be found here:
“The forms would typically be sent back to the liquidator who in turn would pass them on to the Redundancy Payments Service, however claims can now be made online should the employee prefer.”
If you’re unsure what rights your employees have regarding their payroll should your business be on the verge of being liquidated,
talk to a member of our legal time on 08450 50 40 60.