The recent collapse of Alastair Dick Tarmac Ltd, a road surfacing company based in Kilmarnock, has left employees facing uncertainty about their jobs, pay and future employment.
When companies suddenly enter administration, workers often receive little warning that their employment may end. In situations like this, employees may have important legal protections under UK employment law, particularly if they were not properly consulted before redundancy.
Employees affected by the administration of Alastair Dick Tarmac Ltd may have the right to bring a protective award claim if the legally required redundancy consultation process was not followed.
Employment lawyer Paul Kissen, who specialises in employee claims following company insolvencies, has helped many workers recover compensation after businesses collapse without proper consultation.
Alastair Dick Tarmac Ltd Administration: What Happened?
Alastair Dick Tarmac Ltd, a well-known road surfacing contractor operating across Scotland, entered administration after experiencing financial difficulties.
The company carried out surfacing work on roads, pavements and infrastructure projects across the region. However, like many construction and infrastructure businesses, it faced mounting economic pressures that ultimately led to insolvency.
Administrators from BTG Advisory have been appointed to oversee the company’s administration process and manage its financial affairs.
Approximately 29 employees are reported to have been affected by the company’s collapse.
For workers, sudden company administration can lead to immediate concerns about redundancy, unpaid wages and future employment prospects.
However, employees should be aware that employee rights still apply, even when a business becomes insolvent.
Employee Rights in the UK after Company Insolvency
When a company enters administration, employees still have several important rights under UK employment law.
These rights may include claims for:
- Statutory redundancy pay
- Outstanding wages
- Holiday pay
- Notice pay
- Protective award compensation
Many employees are unaware that they may also have the right to claim compensation if their employer failed to carry out a legally required collective redundancy consultation.
This is where a protective award claim may arise.
Redundancy Consultation: What Employers Must Do
UK employment law requires employers to consult employees when proposing large-scale redundancies.
If an employer intends to make 20 or more employees redundant within a 90-day period, they must begin a collective redundancy consultation with employee representatives.
The minimum consultation periods are:
- 30 days before redundancies take effect where 20–99 employees are affected
- 45 days before redundancies take effect where 100 or more employees are affected
This consultation process is designed to give employees an opportunity to:
Understand why redundancies are being proposed
- Explore ways to avoid job losses
- Consider alternative employment opportunities
- Raise questions or concerns about the redundancy process
In many insolvency situations, however, employees may receive little or no consultation before redundancies occur.
If this happened in relation to the administration of Alastair Dick Tarmac Ltd, affected employees may be able to bring a protective award claim.
What Is a Protective Award Claim?
A protective award claim is a claim brought in the Employment Tribunal when an employer fails to follow the required collective redundancy consultation rules.
If the tribunal finds that the employer did not properly consult employees, compensation of up to 90 days’ gross pay per employee may be awarded.
Unlike other employment claims, protective awards are not based on financial loss. Instead, they are designed to penalise employers who fail to comply with consultation requirements.
Even where a company has gone into administration or liquidation, employees may still be able to pursue a claim.
In some cases, compensation may be recoverable through the National Insurance Fund, meaning employees may still receive payment even if the employer no longer exists.
Legal Advice for Employees Affected by Alastair Dick Tarmac Ltd
Employment lawyer Paul Kissen has extensive experience representing employees in protective award claims following company administrations.
He has successfully helped workers recover compensation in several high-profile insolvency cases, including:
- Debenhams
- Tuffnells Parcels Express
- Mortons Rolls
- Allma Construction
- And many more
These cases involved employees who were made redundant without the legally required consultation period.
Paul Kissen
Paul Kissen
“When companies enter administration, employees are often left in a difficult position and may not realise that they still have legal rights. If workers were not properly consulted before redundancy, they may be entitled to bring a protective award claim for up to 90 days’ pay.”
“In insolvency situations, consultation is sometimes overlooked, but the law still applies. Employees affected by the collapse of companies such as Alastair Dick Tarmac Ltd should seek legal advice quickly to ensure they do not miss the deadline for making a claim.”
Email: paul.kissen@thompsons-scotland.co.uk
Telephone number: 0141 566 6856
Email: paul.kissen@thompsons-scotland.co.uk
Telephone number: 0141 566 6856
What are the Time Limits for Protective Award Claims
Employees affected by the administration of Alastair Dick Tarmac Ltd should be aware that strict time limits apply.
In most cases, employees must begin the Employment Tribunal claim process within three months minus one day from the date their employment ended.
Before bringing a tribunal claim, employees must also start ACAS Early Conciliation, which is a required step designed to explore settlement options.
Missing these deadlines could mean losing the right to bring a claim entirely.
What Should Employees Should Do Next
Employees affected by the collapse of Alastair Dick Tarmac Ltd should consider taking the following steps:
Confirm the redundancy process
Check whether you received formal consultation meetings or whether redundancy was announced without warning.
Collect employment documents
Keep records such as employment contracts, payslips and redundancy letters.
Seek legal advice early
Specialist employment lawyers can determine whether you may have grounds to bring a protective award claim.
Understanding Your Rights After the Administration of Alastair Dick Tarmac Ltd
The administration of Alastair Dick Tarmac Ltd has created uncertainty for employees who worked for the Kilmarnock-based road surfacing company.
However, even when companies collapse, workers still have important legal protections.
If the correct redundancy consultation process was not followed, employees may be entitled to bring a protective award claim and recover compensation of up to 90 days’ pay.
Seeking advice from an employment lawyer experienced in administration employee rights, such as Paul Kissen, can help affected employees understand their options and ensure they receive the compensation they are entitled to.
Talk to Thompsons About a Protective Award Claim
If you worked for Alastair Dick Tarmac Ltd and were made redundant without proper consultation, you may be entitled to bring a protective award claim for compensation of up to 90 days’ pay.
Our specialist employment lawyers can help you understand your administration employee rights and determine whether your employer failed to follow the required redundancy consultation process.
To find out whether you may be able to make a claim, speak to Thompsons Solicitors today on 0800 0891 331
Getting legal advice early can help ensure you do not miss the deadline to bring a protective award claim and that you receive the compensation you may be entitled to.
