More than 200 former employees of the Stewart Milne Group are to share a compensation payout totalling approximately £1 million, following the construction firm’s collapse last year and the abrupt termination of their roles.
Each worker will receive around £5,000 after a successful group legal claim, known as a “protective award,” due to the company’s failure to consult staff ahead of making them redundant.
As reported by BBC Scotland, Stewart Milne Group, a prominent Aberdeen-headquartered housebuilder founded in 1975, entered administration in early 2024, resulting in the loss of over 200 jobs across Scotland.
Staff reported being “dismissed without any consultation or any warning,” according to Paul Kissen, the employment lawyer with Thompsons Solicitors who represented them. He emphasised: “After what has been a very hard-fought battle over the best part of 18 months, they have finally received in total about £1m, which is about £5,000 each, and they are all absolutely delighted.”
The payout comes from the national insurance fund through the redundancy payment service, the same mechanism used for standard redundancy pay-outs in cases of employer insolvency.
Mr Kissen explained that the claim qualifies as a protective award, a legal remedy designed for situations in which 20 or more employees are dismissed without the legally required consultation period. All claimants in the group have been successful.
The Stewart Milne Group’s failure shocked dedicated staff, many of whom described their treatment as “disgusting” and were left deeply uncertain about pay and redundancy rights in the immediate aftermath of the administration process.
Unite the Union has also publicly criticised the “lack of notice given to workers” and promised to pursue all legal avenues for those affected.
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Founder Stewart Milne expressed devastation at the company’s collapse, noting that, despite his efforts – including postponing his retirement in hopes of securing a future for the business – viable buyers could not be secured and the firm’s main lender withdrew support, leaving administration as the only option.
This legal victory provides some financial relief for those who lost their livelihoods, and serves as a reminder of the protections owed to employees when large employers face financial difficulty in the UK.
