SACKED staff at Rangers kingpin Mike Ashley's clothing firm are to begin legal action after reportedly receiving just 15 minutes' consultation over the risk to their jobs.
Thompsons Solicitors have agreed to represent workers who say they have had their employment rights trampled on on a no win, no fee basis.
The Sports Direct owned company went into administration with the loss of 79 permanent staff and 166 agency or zero-hour contract workers at Dundonald, South Ayrshire.
It has now been claimed that Business Secretary Vince Cable was not given advance notice of the redundancies. Employers have to notify the Secretary of State at least 30 days before dismissals take effect if 20 or more employees are to be made redundant.
Failure to do so can be a criminal offence under Section 194 of the Trade Union and Labour Relations (Consolidation) Act and those found guilty can be, if convicted, liable to a fine of up to £5,000.
Under the same act, where an employer proposes to make 20 or more employees at one establishment redundant within a period of 90 days or less, it is also required to consult with appropriate representatives of the affected employees.
Consultation must begin in good time, and at least 45 days before the first dismissal takes effect in the case of 100 or more dismissals, or at least 30 days in all other cases.
Workers are to take their cases to an employment tribunal but legal advisers believe all dismissals on these grounds will be judged automatically unfair and compensation would be awarded to all employees.
Lawyers say the awards, which could run into tens of thousands, will have to be paid for by the Insolvency Service, the government executive agency, funded by the taxpayer.
David Martyn, of Thompsons, said workers can expect to receive up to eight weeks' pay as a protective award over a failure to consult with staff, on top of any redundancy payment owed.
However, as USC was in administration and was unlikely to pay out, he said it was "inevitable" the bill will have to be picked up by the Insolvency Service.
Staff received a first letter on January 14 and dated the same day, at the start of a staff meeting stating that the employees at the Olympic Business Park would be at risk of redundancy and that consultation had begun.
"After considering all possible options and the company's financial position, the company has decided that there is a risk that it will be unable to continue to provide work for all of its employees and that it may therefore have to make redundancies," it said.
It said that there would be a staff meeting the same day to advise of the risk and to "consult with affected employees about this in so far as possible in the timeframes".
The letter from one of the joint administrators, The Gallagher Partnership, said that "due to the timeframe" the outcome "will need to be concluded later today".
Staff have said they received a second letter dated the same day after a short discussion, 15 minutes later, saying the consultation had finished and "the company was unfortunately unable to identify any alternative to your redundancy or any way in which your redundancy could be avoided".
It referred staff to the Insolvency Service's Redundancy Payments Service funded by the taxpayer, who, the letters said, would pay up to a limit of £464 a week of any claim they may have for arrears of pay, accrued holiday pay, pay in lieu of notice and redundancy pay.
One staff member told MPs who are calling for an inquiry into what has happened: "Fifteen minutes consultation, that's all I am worth."
Staff have registered their complaints to Brian Donohoe, the local Labour MP and Glasgow South MP Ian Davidson, chairman of the Scottish Affairs Select Committee.
Mr Donohoe is to push for Mr Ashley to be brought before the Department of Business, Innovation and Skills to explain the actions.
The administration of West Coast Capital (USC) Ltd. - the name of the company behind the USC retail brand - was jointly handled by former Rangers oldco administrators Duff & Phelps and the Gallagher Partnership.
At a meeting of USC's directors in December, the company said it was unable to repay debts.
Diesel had severed a 15 year relationship with USC the previous year and a number of other big brands are said to have fallen out with the retailer.
Sports Direct declined to comment.
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