Want to talk to an expert employment law solicitor?

You'll receive a callback from a specialist within an hour

MG Rovers workers have lost their seven-year battle in the High Court to recover funds to pay for their redundancy payments in the wake of the collapse of the giant carmaker.

The failure of the court case means that the 6,500 Rovers workers will be paid redundancy payments from the employee trust that was set up at the end of the company. This fund has assets of just £22,000, meaning that the previous Rover employees will be entitled to approximately £3 in redundancy payments each.

John Towers, Nick Stephenson, John Edwards and Peter Beale bought Rover for £10 in 2000, proceeding to pay themselves and Kevin Howe (the managing director) a total of £42 million. The company then went into administration in 2005 and Towers stated that a compensation fund would be set up to compensate employees who were unable to claim a full statutory redundancy payment. However, the compensation fund never received substantial funds. The 6,500 employees made redundant were therefore unable to claim a full statutory redundancy payment as they ranked as unsecured creditors against MG Rovers.

If you believe that you are about to be made redundant (or have been made redundant) then it is recommended that you obtain specialist employment law advice on your rights in a redundancy situation – including protection against unfair dismissal and entitlement to a statutory redundancy payment. It is important to act quickly as if your employer is insolvent then it may be difficult to reclaim monies at a later stage.

Tagged with →  

Want to talk to an expert employment law solicitor?

You'll receive a callback from a specialist within an hour

Share →

Our awards

Request a callback

    Your first name (required)

    Your last name (required)

    Your email (required)

    Your telephone number (required)

    Brief details of your enquiry

    Contact us

    Please feel free to discuss your own position and concerns. Contact your nearest office on:

    T: 020 3397 3603
    E: enquiries@redmans.co.uk
    W: www.redmans.co.uk

    Testimonials

    4.77 Average

    213 Reviews

    Gareth J

    Very efficient, helpful and pragmatic support from Caroline. Happy to work with my requirements / suggestions but also made some very good points which helped to achieve a higher settlement amount. Would highly recommend Caroline and Chris.

    Posted 41 minutes ago

    Ellen S

    Excellent, professional, timely. Friendly when I needed it most. Would recommend to anyone.

    Posted 17 hours ago

    Ellen S

    Excellent, professional, timely. Friendly when I needed it most. Would recommend to anyone.

    Posted 17 hours ago

    Cristina G

    Very professional and reliable. Timely answers, clear and to the point. Always looking for the best for their customers.

    Posted 1 day ago

    Rob T

    Very professional and on target - highly recommended.

    Posted 4 days ago

    Anonymous

    Very efficient service and knowledgeable solicitors.

    Posted 4 days ago

    Anonymous

    Excellent response time from first contact. Quick and easy completion of documents required. Fast response to any queries I made.

    Posted 4 days ago

    Anonymous

    Redmans Solicitors did a great job and were very professional at all times. Would definitely recommend.

    Posted 3 weeks ago

    Gary P

    All good advice, prompt and efficient

    Posted 1 month ago

    Anonymous

    Excellent advice and customer service.

    Posted 3 months ago

    Aneet G

    I would definitely recommend Redmans. Very impressed with service provided. They were extremely proactive in handling my case which made things easier for me. Provided sound advice and resolution. Special credit for this goes to Chris who dealt with my case with great determination and consideration.

    Posted 3 months ago

    Fern M

    Very efficient and friendly

    Posted 3 months ago

    Neville S

    A professional and friendly service, which I would highly recommend.

    Posted 3 months ago

    Daniel T

    Extremely helpful and made a bad situation much more manageable. Where other solicitors seemed disinterested in my situation Redmans immediately made me feel like it was a team effort to achieve a more favourable outcome

    Posted 3 months ago

    Paul T

    Excellent, quick and informative. Chris was a real star and gave me confidence during the uncertainty if a redundancy settlement.

    Posted 3 months ago

    Marina E

    Felt in very capable hands was listened to and given excellent advice. Would not hesitate to recomend and use again if needed.

    Posted 3 months ago

    Rosa B

    Fabulous service all round.

    Posted 3 months ago

    Anonymous

    Redmans were quick to respond to my enquiry and dealt with my case professionally and personably. I received sound advice and was put at ease by Chris Hadrill, Partner.

    Posted 3 months ago

    Alkhas K

    Excellent service.

    Posted 3 months ago

    Mathias G

    Contacted them regarding my end of employment agreement. Chris Hadrill dealt with it and was done and handed back to employer same day more than happy with there service.

    Posted 4 months ago

    Mark W

    Most professional from start to finish offering very a personal service. Most impressive and quick when dealing with the matters in hand.

    Posted 5 months ago