Former workers of collapsed Deeside engineering firm win maximum compensation pay-outs

Former employees of a well-known engineering firm that collapsed earlier this year are to be paid thousands of pounds in compensation after winning their claim for a protective award.

A total of 71 staff who worked for Deeside-based DRB Group will receive a maximum pay-out of up to £4,568, after it was ruled that they were dismissed without proper consultation when the firm went into administration in January 2023.

With representation from legal firms Aaron & Partners and Slater & Gordon, the case was heard in the Wales Employment Tribunal in Cardiff earlier this month.

Paul Hennity, Senior Associate Solicitor in the Employment Team at Aaron & Partners, said: “This is another reminder that companies will be held to account in respect of their legal responsibilities, even during times of financial distress.

“Businesses will be held accountable if they do not formally consult with their employees when potentially dismissing 20 or more staff from a single site.”

Each employee was awarded 90 days’ pay – the maximum pay-out for this type of claim. It follows the group’s failure to consult with its staff as it faced financial collapse at the start of the year – neglecting its obligations under section 188 and 189 of the Trade Union and Labour Relations (Consolidation) Act 1992.

Aaron & Partners has a growing reputation for dealing with protective award claims, with this case the latest in a series of successful outcomes.

Paul Hennity added: “We are proud of our legal team’s dedication in delivering justice for these employees.”