Tuffnells staff in redundancy row

By Chris Tindall and Carol Millett

Advice for former staff of collapsed firm Tuffnells Parcels Express who are seeking redundancy and other related payments has been issued by the Insolvency Service (IS).

Individuals who had an employment contract with the business are eligible to apply for redundancy from the IS but workers and selfemployed contractors who provided services to Tuffnells are not.

Instead, the IS advised that these individuals contact the administrator, Interpath Advisory, to register as a creditor.

It aims to pay eligible claims within six weeks of receiving the application.

Tuffnells appointed Interpath Advisory on 12 June with just 128 staff out of 2,200 keeping their jobs. The remainder of the workforce at the company’s 33 depots has been made redundant.

Interpath said that following Tuffnells’ management buy-out in 2020, the company had been navigating “a number of pressures”, including the impact of Covid-19, high cost inflation and an increasingly competitive market.

“In recent weeks, the financial position of the business was such that the company needed to seek additional financial support,” it added. “After a number of options were explored, the directors took the difficult decision to appoint administrators.

“Unfortunately, the highly competitive nature of the UK parcel delivery market, coupled with significant inflation across the company’s fixed cost base in recent times, has resulted in the company experiencing intense pressure on cashflow.”

Anger among staff was fuelled by an announcement from rival firm DX, shortly before the administration, that it had reached “a full and final settlement” with

Tuffnells in relation to alleged corporate espionage claims.

In an online petition demanding the government investigate the circumstances surrounding the firm’s collapse, one former worker said: “Not only was there no consultation, [there was] no redundancy and no last pay packet.”

Tuffnells staff from the Nuneaton depot have also approached a law firm to seek compensation.

Solicitor Aticus Law said it would work for former staff on a no win, no fee basis on large class action claims: “If Tuffnells did not comply with this obligation, and you were made redundant without notice, you may be entitled to claim compensation by bringing a claim for a protective award to the employment tribunal,” it said.

Alex Jay, head of insolvency and asset recovery at law firm Stewarts, warned that more delivery compa- nies could follow in Tuffnells’ footsteps.

“Tuffnells’ demise is indicative of changing consumer habits driving competition in particular sectors,” he said.

“We can expect more of that in the consumer retail sector.”