Almost 100 staff at failed Harrogate telemarketing company Amvoc are to take legal action over the way redundancies were managed.

The Stray Ferret revealed yesterday up to 450 people received an email at about 10pm on Tuesday night from chief executive Damian Brockway informing them the firm had ceased with immediate effect.

Mr Brockway said the company had entered administration and blamed “covid debts”.

Based at Cardale Park in Harrogate, Amvoc also has offices in Leeds and Manchester.

Within hours of the news breaking, employment law firm Aticus Law said it had been contacted by 91 people affected.

The firm said it was now in the early stages of investigating the circumstances of the company’s collapse and concerns around how the redundancy process was managed.

It was also looking into whether ex-employees were eligible to claim for a protective award claim against the company.

Aticus said if its clients were able to successfully pursue a claim, those involved would receive up to eight weeks’ worth of pay in compensation, with a cap of £571 per week.

The Manchester-based firm is currently representing over 130 ex-employees to bring a protective award claim against Made.com which entered into administration last year, around a dozen former employees of FlyBe, and more than 50 staff who lost their jobs when BritishVolt collapsed earlier this year.

Edward Judge, a founding partner at Aticus Law said:

“We have now been contacted by 91 individuals who say that they have been affected by job losses following the recent collapse of Amvoc.

“We are in the early stages of investigating those claims, and advising our clients on their options.”

“As is always the case with protective award claims, the individuals who have reached out to us for advice regarding their rights are understandably very anxious and concerned about what the future has in store for them.”

A protective award is compensation awarded by an employment tribunal if an employer fails in its duties.

Mr Judge 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.”

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Mr Brockway’s email to staff, seen by the Stray Ferret, said: 

“We have appointed administrators with immediate effect who will now be responsible for paying wages this week and all outstanding bonuses.

“I am gutted. Words fail me.

“Unfortunately our covid debts were too high and repayments not high enough. We have been issued with immediate request to pay all outstanding within seven days which is impossible.

“I cannot tell you how upset this makes me.”

Forty-six former members of staff at Harrogate firm CNG have won an employment tribunal against the failed company worth about £210,000.

The ex-colleagues claimed CNG didn’t follow the correct redundancy procedures when the firm went into administration last year.

A tribunal in Leeds agreed with their claim, brought by solicitor Nuala Toner, and awarded them 90 days’ pay as compensation.

However, each claimant’s award was capped at eight weeks and a maximum of £571 a week. It means the total sum awarded to the group as a whole is about £210,000.

Any remaining sum owed can be claimed in the insolvency process, although whether any funds will be left when all creditors are paid remains to be seen.

The compensation will be paid by the government’s Redundancy Payment Service because CNG is in administration.

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• CNG building in Harrogate goes back on the market
• Administrators reveal state of Harrogate firm CNG’s finances

The claim, heard last month, was not contested by the administrators of CNG.

CNG ceased trading last year due to spiralling wholesale gas and electricity prices.

Nuala Toner

Ms Toner told the Stray Ferret:

“As early as August 2021, draft management accounts showed CNG had significant financial difficulties and by October 2021 it was accepted CNG was no longer sustainable. Despite this no steps were taken to commence consultation until November 2021, by which point any consultation was pointless.

“When mass redundancies are made, consultation must be meaningful and must be undertaken with a view to reducing the number of redundancies or mitigating the effects of the dismissals. By failing to undertake proper consultation in good time, the employees were denied the opportunity to mitigate the effects of the dismissals.”