A 90-year-old haulage company that went bust earlier this year making more than 100 of its employees redundant with immediate effect, has been ordered to pay 18 of those staff compensation.

Kenyon Haulage Ltd, which was based in Blackburn and had been in operation since 1935, went into administration in March, with Kroll taking the lead on the company’s insolvency.

A spokesperson for the administrators confirmed at the time, that 90 of the 97 road haulage, and 18 of the 22 warehousing employees had been made redundant.

Following an employment tribunal heard last week, 18 former employees of Kenyon's have now been told they are entitled to compensation after a protective award was made in respect of each of them.

The tribunal found that Kenyon's failed to consult with the each of the claimants (former staff) as persons who might have been affected by proposals to dismiss, or measures taken in connection with the dismissal, of 20 or more employees, in breach of the Trade Union and Labour Relations Act.

Kenyon's was therefore ordered to pay remuneration to the claimants for a protected period of 90 days beginning on March 20, 2023.

A tribunal hearing decision reads: “There was no proper warning or notice given to, or consultation with, the workforce.

“No employee representatives had been elected or appointed for any such consultation within Section 188A of TULCRA.

“The dismissals were put into effect without any consultation or advance notice.

“In these circumstances, Kenyon's was in breach of the duty under Section 188 of the 1992 Act and the tribunal makes an award under Section 189 in favour of each of the claimants for the maximum protected period of 90 days commencing on March 20 2023.”

Kenyon's now has 10 days to provide the Secretary of State the name, address and national insurance number of every employee to whom the award relates, and the date of termination of the employment of each such employee.

Each employee concerned within the award must also seek payment of their individual award from Kenyon's, or the Secretary of State, quantifying the same.

Failure to pay or any dispute as to the amount payable, becomes a matter for a further separate claim under s.192 of TULRCA for payment of the award.

It is believed the 18 former employees are entitled to 90 days gross pay from Kenyon's, although it is also believed that considering the company’s insolvency, receiving this money will be highly unlikely.

However, the Secretary of State will pay up to eight weeks wages at a maximum of £643 per week. 

At the time the company folded, an employee of the once family-owned firm - which was taken over in 2016 by Graham Darnell who also owns and runs Truswell and Sons and did run Adam Jones and Sons until that went bust in May 2022 - said around 70 drivers and warehouse staff were called into a meeting on Monday March 20 where they were given the bad news.

The employee, who did not wish to be named, but had worked for the haulage firm in Thornley Avenue for around four years said: “We were called in as employees to a meeting on Monday.

“We knew the company had been struggling as they’ve not been able to pay the drivers and suppliers for their fuel and what they need on a day to day basis.

“So we get called in on Monday at 11am and there were about 70 of us altogether, and the administrators and insolvency team were there too.

“We were told that we were being made redundant from that point on.

“Kenyon’s has been around since 1935, everyone in Blackburn knows Kenyon’s, and then the family sold it on 2016 to Graham Darnell and it’s not been the same since.”

The employee claimed that as well as having to pay for their own fuel, drivers had not been paid for the last week’s work, and were not being given remaining holiday pay or time in lieu.

The employee went on: “Some of us knew this was coming as the firm has been having trouble paying some of the drivers. The majority of us have no jobs to go to but some of us, like myself, who knew there was something going on have managed to get other work.

“Some of the drivers have been there 16 years, we feel aggrieved.”

Kenyon’s were contacted for comment at the time but said to go to the administrators for an official statement.

In light of the recent tribunal decision, administrators Kroll has been contacted for comment.