Former employees of the collapsed Jehu Group are still waiting to hear how much money they are owed after being made redundant more than a year ago, it has emerged.
A progress report from Begbies Traynor’s administrators said an Employment Tribunal claim was underway to determine how much the former employees were entitled to.
Wales-based contractor Jehu ceased trading in October 2022, with more than 100 people losing their jobs.
Begbies Traynor said the Severance Pay Service had paid a payout of just over £458,000 to former employees, which covered back pay, holiday pay, pay in lieu of notice and redundancy pay .
However, an Employment Tribunal claims a protective award, relating to an allegation that jehu Project Services did not provide adequate consultation to employees prior to the layoff announcement, it is ongoing and is not being defended by administrators.
A report issued by Begbies Traynor last week showed the insolvency specialist realized almost £1.2m of Jehu’s assets within a year of the appointment.
However, according to the document, nothing had been paid to preferred or unsecured creditors, including subcontractors, banks and HMRC, in that time.
On the current outlook, unsecured creditors were unlikely to receive a penny, the report warned.
Begbies said there were “sufficient funds” for the full repayment of senior creditors. However, he added that the level of these claims could not be established as the Employment Tribunal claim had not been concluded and this meant that “the preferred element of pension contributions pending claim” was indeterminate.
The Begbies Traynor website says that employees who keep their jobs during the first 14 days of an administration process become preferred creditors and can claim up to £800 for wages and commission, as well as a maximum of six weeks holiday pay and certain pension payments.
A spokesman for the trustees added that Labor Courts can make awards of up to 90 days’ pay, although back pay payments already made would be deducted from any final settlement.
Meanwhile, the latest report showed that Begbies Traynor himself pocketed £135,000 for his own remuneration as Jehu’s manager.
The insolvency specialist said he had incurred “time costs” of £149,037 in his first 12 months in the job. The report showed that Begbies charges up to £640 an hour for senior staff in its Cardiff office.
The administration has been extended until October 27, 2024.
