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Nearly 4,500 former staff members will share compensation after a legal case showed their employers, Woolworths and Ethel Austin failed to maintain legal obligations.
A previous court decision ruled that shopworkers at the firms were not entitled to compensation following bankruptcy after administrators failed to make contact with union officials after both firms went into liquidation.
Judges said that stores with fewer than 20 staff were not entitled to a payout - but this decision was overturned last week (May 31st).
Around 1,200 former employees of Ethel Austin and 3,200 ex-workers at Woolworths will now share £5 million, or approximately eight to 12 weeks pay each.
John Hannett, Union of Shop, Distributive and Allied Workers general secretary, said: "I am absolutely delighted with this decision.
"It has corrected the clear injustice of denying compensation to staff purely on the basis of the number of employees at each individual store."
Posted by Francesca Witney
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