// Former Oasis Warehouse employees seek redundancy compensation through legal action
// At least three former staff allege that Deloitte did not carry out a consultation period as per law
// Oasis & Warehouse Group collapsed in April 15, leading to 1083 job losses
Former employees of Oasis and Warehouse Group are reportedly taking legal action with regard to their redundancy payouts after the retailer went into administration.
According to Drapers, the former staff are demanding that administrator Deloitte provide them a protective award – a form of compensation awarded by an employment tribunal when collective redundancy procedures are not followed through properly.
Drapers said at least three former employees allege that administrators from Deloitte did not carry out a consultation process when the business collapsed.
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As required under employment law, a 45-day consultation period must be carried out when more than 100 staff members are made redundant.
Should the employment tribunal rule on a protective award, some of the money would be recoverable from the National Insurance Fund.
The Oasis and Warehouse Group – which owned Oasis, Warehouse and online retailer The Idle Man – fell into administration on April 15.
As administrators failed to find a buyer by the end of that month, the business collapsed and 1803 jobs were lost as it ceased trading.
However, Oasis and Warehouse Group’s intellectual property and stock was bought by restructuring expert Hilco Capital, although they decided not to buy the rest of the business.
In June, Boohoo acquired the online businesses and all associated intellectual property of Oasis and Warehouse in a deal worth £5.25 million from Hilco Capital.
Boohoo has since re-hired some previous Oasis and Warehouse staff on three month contracts with one month notice periods.
Deloitte has not provided comment on the legal action.