Member

Let me give the recent bankruptcy of Go-Centric as an illustration of the precise reality of what happens in real life, rather than the imagined situation that Governments have been persuaded will be the case. Go-Centric, a Glasgow company, went bankrupt, owing some £5 million to employees, HMRC, trade creditors and others. Some £600,000 was owed to employees in redundancy, sick pay and so forth, and £637,000 was available, so the employees received all that they were due. However, in doing this, there was no consultation, so immediately ambulance chasers wrote to these employees saying, “We have some free money for you if you take the Government to the employment tribunal”, which they did. The employment tribunal awarded the 90 days’ penalty money, then the maximum that could be awarded—another £600,000 for these employees.