Sport Direct boss to pay up as treatment of Scots workers is branded ‘disgraceful’ by judge

Controversial businessman and Glasgow Rangers Football Club Plc shareholder, Mike Ashley has been ordered to pay compensation to 50 former employees of his company’s warehouse in Dundonald, Ayrshire, after his employment practices were branded “disgraceful” and “unlawful” by a Glasgow employment tribunal.

It is understood that payouts could run to thousands of pounds for each employee.

The workers, who were employed by Ashley’s failing clothing chain USC, have all secured a protected redundancy payout after the firm – which is now in the control of administrators Duff & Phelps – gave them just 15 minutes’ notice before they lost their jobs.

Employment judge Robert Gall said the workers should each receive 90 days’ redundancy pay.

The protective award means Duff & Phelps will now have to set money aside for the former employees.

The handling of the closure of the warehouse in January this year, where 88 people were employed, prompted fierce criticism of USC’s parent company Sports Direct and Newcastle United owner Ashley.

Thompsons Solicitors, who represented the workers, said the decision showed that employers cannot mistreat staff in the way Sports Direct did.

Rory McPherson, the partner in charge of Thompsons employment law department, said: “This judgment from the tribunal is very good news for the former employees at Dundonald who brought the case.

“They showed courage in standing up to and beating a rich and powerful employer like Mike Ashley who used disgraceful and unlawful employment practices.

“I’m very glad this law firm was able to help the workers involved and we call on politicians in both Holyrood and Westminster to do all they can to stop employers like Mr Ashley thinking they can ride roughshod over workers’ rights.”

The tribunal heard that the firm was aware of its financial difficulties and a possibility of administration as far back as November 2014.

Stock was removed from the warehouse on January 7 amid rumours that the warehouse was to close, but the staff were never officially informed.

A written judgment on the case – which was not defended by USC – states: “A staff meeting was called for January 14. At that meeting a letter was given to all employees regarding the situation.

“After approximately 15 minutes given to employees to digest the contents of that letter a second pre-prepared letter was issued.

“That letter referred to there having been consultation and it intimated redundancies. The employees were dismissed in terms of that letter. There had in fact been no discussion or consultation regarding alternatives or information as to redundancies.”