Staff at online grocer Farmdrop are considering to take legal action against the business, arguing that the company failed to consult its employees during the redundancy process properly.
The move comes as the business ceased trading last week after failing to secure new funding, resulting in customers being informed that all Christmas orders scheduled for after 16 December have been cancelled.
The London-based company, which was founded by a former City broker Ben Pugh in 2012, filed a notice of intention to appoint administrators at the High Court, with hundreds of employees losing their jobs.
According to The Grocer, law firm Simpson Millar has been contacted by many workers who were made redundant, who claiming they were not consulted over the job losses.
As a result, Simpson Millar revealed its specialist employment team started investigations in a bid to secure a “protective award” for ex-Farmdrop employees.
“It is incredibly sad to read of the collapse of Farmdrop, with many customers now being left without orders and leaving many employees without work and no time for preparation over the Christmas period,” Simpson Millar employment law expert Anita North told The Grocer.
“Regardless of whether a company is struggling financially, they still have a duty under current employment law legislation to carry out a proper consultation with staff at risk of redundancies.”
North added: “Where that does not happen, employees can bring a claim for a protective award.”