Compensation totalling £67m will be handed out to thousands of former Woolworths staff.

Shopworkers union Usdaw won the compensation for more than 24,000 former Woolworths employees after a tribunal ruled that administrators for the defunct high street chain failed in their legal duty to consult Usdaw before making redundancies.

The tribunal ruled that Usdaw members should receive 60 days’ pay at £330 a week – the maximum amount it was able to award.

“While the award is never going to fully compensate people for losing their jobs, I’m sure our members will welcome the money,” said Usdaw national officer John Gorle. “Cases like this once again demonstrate the immense value of belonging to a trade union.”

However, 6,000 former employees will not receive a penny. The award does not extend to smaller stores where fewer than 20 redundancies were made.

“The fact that some of our members won’t be compensated simply because their store had less than 20 employees is just plain wrong and shows the gaping loophole in and injustice of the current legislation,” Gorle added.

“Nearly 30,000 employees were made redundant from Woolworths at the same time and for the same reason, so to suggest 3,000 of them didn’t constitute a collective redundancy is nonsense.”

Usdaw may appeal on behalf of those who missed out.

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