Wiggle could face legal jeopardy after mass lay-offs

Staff made redundant from online retailer could seek compensation, experts say

- Tom Davidson

Wiggle Chain Reaction Cycles could now face unfair dismissal claims from staff members laid off last week, employment experts say.

Last Wednesday news broke that the online retailer has made 105 redundancies, a week after it entered administration. The company directors announced the dismissals in a "lastminute meeting", a source told CW.

According to employment specialists, companies should follow a consultation timeline for redundancies. This period should begin at least 30 days before any collective dismissals take effect.

"Technically, they should have informed them and followed a consultation process," Moira Brown, director of Expert HR Solutions, told CW. "If they failed to consult, they could very well find an employment tribunal will find for each employee that they've been unfairly dismissed."

Brown's colleague, Chris Wilkinson, added that the fact a company is in administration "does not prevent a tribunal case being taken out".