A family-run building firm based in Glasgow that went bust and dismissed 149 employees has been ordered to pay compensation by a tribunal judge.
Central Building Contractors, which was established in 1971 and had Glasgow headquarters, went into administration in April after a period of difficult trading conditions made worse by covid left the company with a funding shortfall.
Administrators said they were required to make 149 employees redundant 'immediately' but would be 'working to support them'.
However, a tribunal heard that there was no recognised trade union or elected representative and that no steps were taken to elect any representatives or consult in relation to the dismissals.
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While the administrators stated that “it was not possible for the company to trade in administration” no explanation was given for the failure to elect any representatives or consult in any way.
It was found that they breached employment regulations by dismissing staff within 90 days without consultation.
Former Central Building Contractors employee Jordan Kirk won his case against the firm and has now been awarded compensation for the "protective period of 90 days".
The company provided no response in the tribunal case but joint administrators confirmed by email that 149 employees had been dismissed “immediately”.
Speaking at the time, James McAlpine, director at Central Building Contractors (Glasgow) Limited, added: “Already difficult trading conditions have been greatly exacerbated by COVID-19 which has made our financial position unsustainable. It is with significant regret that administration has been necessary.
“We have been very fortunate to have loyal and hard-working staff, a supportive supply chain and professional partners, many of whom have worked closely with the business for a great many years. We will work closely with the Administrators to ensure every possible assistance is provided to all our employees during this exceptionally difficult time.”
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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