Some staff of Britishvolt are mulling a legal claim after they were allegedly axed via a Zoom call today.
Law firm Aticus is in the "very early stages" of pursuing a protective award claim on behalf of the affected employees by the collapse of the company today.
Employees are pursuing the claim due to the way the redundancy process was managed ahead of the electric car battery startup calling in the administrators.
Currently, the claim includes people working in the company’s head office in Birmingham, looking to receive up to eight weeks’ worth of pay in compensation.
The lawfirm, which is also representing more than 130 ex-employees to bring a claim against Made.com which entered into administration last year, said it is investigating whether there are grounds to claim for a 'protective award', which is compensation awarded by an employment tribunal if an employer fails in its duties.
As Britishvolt, which was planning to build a giga-battery factory in Northumberland, has filed for insolvency the government may be required to underwrite the award, capped at £571 per week.
Edward Judge from Aticus Law said: “We have now been contacted by around 20 individuals who have been affected by job losses at Britishvolt, and from what we understand to date they were made aware of the redundancies over Zoom.
“Sadly, in the current economic climate, it is not unusual to read about companies going into administration. What is worrying, however, is that despite these businesses being fully aware of their legal obligation to enter into fair consultation over redundancies, that process seems to be bypassed entirely time and time again.
“Instead, staff are told that they have lost their jobs with immediate effect, leaving them anxious and no doubt concerned about what the future has in store for them.”
He said increased awareness around workers’ rights means more people are prepared to challenge "poor employer behaviour".
A protective award is compensation awarded by an employment tribunal if an employer fails in its duties.
“While historically people were under the impression that when a business has collapsed there is nothing that can be done, employees are now far more familiar with their rights and their ability to hold the company accountable," Judge said.
“We have already been contacted by a number of individuals who would like us to investigate the way their redundancies were managed, and we expect that number to go up over the coming days and weeks.”
He added: “The protective award is a vital safety net for so many families in fast-paced redundancy situations that often leave them with no source of income and absolutely no notice.
“However, many people don’t realise that you can only get a Protective Award payment if you are included as part of the claim and are listed as part of the Schedule of Claimants attached to the Tribunal Judgment.
“You can’t simply watch from the side-lines while ex-colleagues take the legal challenge forward. It’s important to make sure your name and specific job title is included.”
Trade union Unite also laid part of the blame for the loss of over 250 jobs and the collapse of Britishvolt at the door of the government.
“The complete lack of a competent industrial strategy by the government to protect jobs in the UK automotive sector is becoming potentially more catastrophic by the day," said Unite automotive sector spokesman Steve Bush.
“It is extraordinary that despite the UK automotive sector being required to move to the production of electric vehicles, there are still no UK stand-alone factories making the batteries that are required. The demise of Britishvolt means there are not even any in the pipeline.
“The government’s strategy seems to be to cross their fingers and hope that everything will be ok. The workers in the automotive sector are frankly enraged at this dreadful and total abdication of leadership”