JTF warehouse staff in South Yorkshire to take bosses to court over redundancy row
Around 100 workers at JTF Mega Discount Warehouse are set to take legal action against bosses after they were made redundant with immediate effect after a deal for the sale of the business fell through.
Nottinghamshire-based JTF, which had a store in Catcliffe, Rotherham, announced it had collapsed on Wednesday July 21. Its collapse will result in the loss of around 500 jobs.
A statement issued on behalf of the company said that the pandemic had played a significant role in its demise, with the forced closure of stores wiping out fireworks and Christmas sales which were ‘two of the largest seasonal items for JTF’.
The company is continuing to seek a buyer, but it has issued a notice of intention to appoint an administrator.
Now, around 100 former members of staff have contacted law firm Simpson Millar, claiming they were notified by email that they had been made redundant with immediate effect, and that those on furlough would not be returning to work as expected.
Simpson Millar said it is now in the early stages of investigations to enable appropriate legal action to be brought to secure what is known as a Protective Award on their behalf for the company’s failure to properly consult staff regarding the mass redundancies.
The firm has also set up an online compensation form, which allows other employees to see whether they can also claim.
Damian Kelly, head of employment law at the firm, said: “The current situation is making it difficult for many companies across most industries and it is no surprise that retail giants – and particularly those that are so reliant on physical footfall - are being significantly impacted by the coronavirus pandemic.
“Sadly in this instance we understand that there had been a buyer for the business, but that the sale will no longer be taking place. As a result, the number of employees who are facing redundancy is really quite significant.”
He said that while many people would assume that JTF would not have to follow the correct employment procedures because it had gone into administration, they still do have a duty of care to their staff under current employment law legislation.