Some 1,686 former ISG employees have won claims against the company over a failure to consult them before they were made redundant.
The former employees are expected to receive 90 days’ worth of pay – the length of time a consultation process about their future should have lasted.
The combined payout could amount to between £7m-£9m, depending on the level of their combined salaries, with the cost being covered by the taxpayer-funded Redundancy Payments Service.
The weekly total available to them is capped at £719 and anyone claiming benefits such as jobseekers’ allowance in the period would have their total reduced further.
A tribunal judgment by Regional Employment Judge Rohan Pirani, seen by Construction News, found in the ex-employees’ favour against four ISG companies – ISG Central Services, ISG Construction, ISG Interior Services Group and ISG Retail.
The companies were all found to have failed to comply with section 188 of the Trade Union & Labour Relations (Consolidation) Act 1992.
ISG, which turned over £2.2bn in 2022 and made a pre-tax profit of £11.5m, went under after a long-running effort to sell the business broke down in September 2024.
It employed more than 3,000 people at the time.
Legal firm CFS Redundancy Payments represented the majority of the employees taking action in the employment tribunal case.
The company’s employment consultant James Lewis told CN that money should start to be paid to those involved from eight weeks’ time.
“It’s an additional claim not always extended to employees so for us to take this on and take it to a tribunal and be successful will be a massive benefit to them,” he said.
The case is the latest in a long line of similar actions regarding defunct contractors in recent years, including one in January 2021 against industry giant Carillion, which went under in January 2018.
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Ian Weinfass