Workers sacked after the collapse of a Fife manufacturing firm have won an employment tribunal after the company failed to follow redundancy rules.
32 members of staff were left without work after Foodmek in Tayport plunged into liquidation.
Judge Alexander Kemp has now awarded a 90-day protective award to 19 claimants who brought forward an employment tribunal.
Tayport-based Foodmek supplied the food and drink industry with specialist equipment for more than 50 years.
It collapsed in October 2023, with then-company directors blaming the impact of the Covid pandemic on orders.
As Foodmek was liquidated it was not possible to give employees 90 days’ notice. This is required when 20 or more people become redundant.
Foodmek employment tribunal
The former employees’ claim was against the company in liquidation and not the new owners who bought the company’s assets, or the directors personally.
Foodmek failed to appoint representatives were elected in accordance with requirement of section 188 of the Trade Union and Labour Relations Act.
Judge Kemp’s decision means although the insolvent company does not have sufficient funds to make this payment, employees will now receive payment through the Insolvency Service, which manages claims through the Redundancy Payments Office.
And the 90 day pay award will be treated as arrears of wages.
Former employees will receive up to eight weeks’ pay, backdated to October 9 2023.
Foodmek collapse and relaunch
Foodmek fell into liquidation in October 2023. At the time, managing director Scot Kelly blamed the impact of projects being deferred during the economic downturn.
It has exported to more than 20 countries since its formation in 1971.
During the pandemic it diversified into making vessels for Covid test kits.
In 2019 the company was awarded £500,000 loan scheme from Scottish Enterprise which for new equipment, innovation and extra highly-trained engineers.
And in 2021 the company said it had its “best ever year” as it traded through the pandemic. At that point it had an order book of £1.5 million.
Foodmek’s assets were acquired during the liquidation process in November of that year by Clyde Associated Engineers (CAE). They initially recruited 15 employees but had plans to expand.
This recent employment ruling follows a similar decision given in favour of sacked staff at administration stricken Hadden Construction in Perthshire.
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