What Wilko's Administration Means for its Workers

Sadly, Wilko, a well-known household goods store in the UK, is facing financial troubles and is considering entering into administration. This means that the company is trying to sort out its financial problems, which might involve restructuring the business or finding a buyer.

This situation can be worrying for Wilko's Employees, but it's important they know about their rights during this time, especially about something called a Protective Award.

The Basics:

Wilko has been part of the UK high street since 1930, selling a variety of household items. But recent times have been tough for the company due to a weaker economy, more people shopping online, and effects from the COVID-19 pandemic. All of these challenges have pushed Wilko into administration.

What Does This Mean for the Employees?

When a company goes into administration, it can lead to stores closing and jobs being lost. But, if lots of employees (20 or more) are being made redundant (losing their jobs) within a short time (90 days or less), the law says the company should talk to the employees about it first. This is called a consultation and the company should discuss ways to try and avoid redundancies, lessen the number of redundancies, or help those being made redundant.

What is a Protective Award?

If Wilko makes a lot of employees redundant and doesn't have this consultation first, then the employees might be able to claim a Protective Award. This is money that an employment tribunal can give to employees if their employer didn't consult with them properly before making them redundant.

You can see if you're eligible to make a claim here.

Each employee has to make their own claim; it's not a group thing, unless you are represented by a Union. If an employee is successful in their claim, they could get up to 90 days' pay as compensation. But, if the company doesn't have enough money (which is often the case in administration), the government can pay the claim instead. However, the government's payout is capped at 8 weeks of pay, with a limit on the maximum weekly pay.

What's Next?

With Wilko's current financial problems, employees should try and get advice from a legal expert or their trade union (if they are a member) to understand their rights better.

If redundancies are made, a Protective Award could help employees financially during a difficult time. A Protective Award is a separate claim from the statutory claims for notice, holiday and redundancy payments an employee can make themselves via the online government portal.

It's a hard time for Wilko and its employees, but the administration could help the company get back on its feet.

As this process continues, it's key that employees rights are respected, and that consultations take place if redundancies are being made.