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Former Stewart Milne staff share £1 million payout

Former Stewart Milne Group staff have been awarded around £1m in compensation.

BBC Scotland reported that they have now been awarded about £5,000 each, following the administration last January – with the loss of 217 jobs.

At the time, workers were given no notice and then told to apply for compensation from the UK Government.

Paul Kissen, an employment lawyer at Thompsons Solicitors, has acted for the former employees.

“After what has been a very hard-fought battle over the best part of 18 months, they have finally received in total about £1m, which is about £5,000 each, and they are all absolutely delighted,” he stated. “The mass claim is called a protective award and it’s a type of group claim where 20 or more employees are dismissed as redundant by an employer and there’s no consultation process.

“When a company has gone into administration or liquidation, the money is paid to everyone from the national insurance fund, from the redundancy payment service, so it’s the same place that other payments that people get who are made redundant comes from – for example redundancy pay.

“There’s just over 200 former employees involved in the claim, all of them have been successful in getting the protective award.”

The company was founded in 1975 by businessman and former Aberdeen FC chair Stewart Milne.

Starting out as an electrician, his group grew to prominence across the north east.

Milne had postponed retirement in an attempt to save the business and at the time said he was “devastated” by the collapse.

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