Workers at Dundee’s WH Brown Construction will receive their statutory redundancy pay, after the firm went into receivership last year.
The cases of 128 employees were taken to an employment tribunal in Dundee by the Union of Construction, Allied Trades and Technicians.
Tribunal judge Mr CS Watt ruled that the employees are each entitled to the full protective 90 days’ pay in redundancy having been made redundant without consultation and with no mitigating circumstances.
As WH Brown no longer exists, the payments will be made by the Government insolvency service which pays statutory redundancy to employees of insolvent companies.
WH Brown was a construction company based in the West Pitkerro industrial estate with contracts throughout east central Scotland, but over the last few years faced challenging trading conditions.
It made a loss of £492,000 for the 16 months to March 31 2012 and the tribunal judgment said the company needed alternative sources of funding to continue to trade.
These sources were not forthcoming and on August 20 the bank appointed receivers, who were told steps had been taken to put the company into administration.
Later that day the receivers announced the firm was ceasing to trade. There was no consultation or talk with the union before the redundancies were implemented.
The tribunal ruled that the firm was in breach of its obligations under trade union and labour relations legislation, and that the 128 staff UCATT represented should receive protective 90-day awards.