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Former Complete Utilities Staff Seek to Sue Failed Company

Thursday, Nov 4th, 2021 (12:44 pm) - Score 2,016
Law internet uk isp

The collapse of UK civil engineering firm Complete Utilities this week (here), which disrupted ISP Gigaclear’s rollout of gigabit-capable broadband, resulted in around 300 staff being told via email that they no longer had a job. In response, an unspecified number of those former employees are attempting to sue the firm.

Based in Gloucestershire, and with their HQ at Overton Farm just outside of Gloucester, Complete Utilities made the shock announcement of its collapse on the 31st of October 2021. One member of staff, a Project Manager from their Gloucestershire HQ, claims that the business emailed around 300 staff on Monday morning telling them not to turn up for work, and that their jobs had been lost.

In response, the aforementioned Project Manager, supported by a number of former employees, have now hired law firm Atticus to examine the claims that the company failed to consult with staff over the redundancies, with a view to pursuing legal action against them over how the process was managed.

In theory, a successful challenge could enable the former employees to claim a Protective Award, which is worth up to eight weeks’ of pay in compensation, with a cap of £538 per week. As Complete Utilities are insolvent, then it would fall to the Insolvency Service to pay the Protective Award (hence why it’s capped at 8 weeks pay).

Mohammed Balal of Atticus Law said:

“The collapse of Complete Utilities will have come as a real blow to those who have been made redundant as a result.

Based on what clients are telling us, they received an email Monday morning instructing them not to turn up for work, they had lost their jobs with immediate effect. Employees have had their lives turned upside down, now feeling understandably anxious and concerned with what the future holds.

While many people think that as the business has collapsed there is nothing that can be done, those affected actually have the right to hold the company accountable. Under the current employment law if a business is making more than 20 employees redundant at one establishment, they must follow the correct consultation process.

We are still in the very early stages of understanding what exactly happened in this instance, however, based on what our clients are telling us this did not happen at Complete Utilities.”

Atticus is now urging others who have been affected by the collapse of Complete Utilities to ensure their job title is included in the legal action (assuming it proceeds), otherwise they will not be able to benefit. “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,” said Mohammed.

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Mark-Jackson
By Mark Jackson
Mark is a professional technology writer, IT consultant and computer engineer from Dorset (England), he also founded ISPreview in 1999 and enjoys analysing the latest telecoms and broadband developments. Find me on X (Twitter), Mastodon, Facebook and .
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Comments
11 Responses
  1. Avatar photo Yatta! says:

    Good luck with that… Atticus is likely the only party that’ll see any cash.

    1. Avatar photo A_Builder says:

      Depends how it was done exactly.

      If it wasn’t done properly by the Administrator/Liquidator then there might be a claim.

      Companies can have insurance for Employment Tribunal Claims hence why registering them in a timely manner can be useful before the policy is closed off. Claims will have to be notified within X days.

      I still think phrases involving flogging + horse + dead come to mind.

      Whatever they do they shouldn’t pay the solicitors a penny.

  2. Avatar photo John H says:

    Legal action rule number 1, only take action against those that have assets to seize.

    Rule no 2, see rule no 1.

    1. Avatar photo Buggerlugz says:

      Like specifically the people in management of the company that fleeced you.

    2. Avatar photo John H says:

      No you can only take action against the legal entity on your contract of employment, ie the Limited company. By definition the liabilities of a Limited company are limited to the company alone, unless specified differently in a contract or loan agreement. Hence why a bank asks for personal guarantees from directors in case of bankruptcy. As the employees are not a bank then they are stuck.

    3. Avatar photo John says:

      Absolute nonsense.

      Even if the company has no money the Insolvency Service (i.e the tax payer) can pay the wages of staff for up to 8 weeks.

      It’s well worth claiming if they have been shafted by the company, even if the company has nothing to give.

    4. Avatar photo John Holmes says:

      In which case you requester with the administrator/liquidator as an employee, you do not use a solicitor who will take a cut.

  3. Avatar photo Mike says:

    Beating a dead horse?

  4. Avatar photo Buggerlugz says:

    I’ve been there and got the t-shirt, company was wound up before I even got to the employment tribunal. I even argued with the judge that the same people were operating the company doing the same trade under a different name. Its a fruitless cause, the law isn’t on the employee’s side.

    1. Avatar photo A_Builder says:

      If you can prove fraud the Judge can actually amalgamate the companies.

      I say can as it has only ever been done a very few times.

      Generally it only happens if the SFO or the Insolvency Service are involved.

    2. Avatar photo Buggerlugz says:

      Trouble is, there are so many unscrupulous folks who have numerous company names registered allowing them to dissolve companies, then open another the next day, so they never have to submit tax returns. Happens all the time.

Comments are closed

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