Another blow for Matt Engineering staff as they're told they won't be getting paid

By Hull Daily Mail | Posted: 2 Nov 2018

Staff at an engineering company which has plunged into administration will not be paid for money they are owed.

Almost 50 employees at Matt Engineering, in Hedon Road, east Hull, arrived at work on Thursday, November 1, to discover administrators were already on the site.

Staff were apparently then told to pack up their tools, before being escorted off the site.

A letter sent to employees by the company acting as agent for the administrators has revealed Matt Engineering is unable to pay its staff money they are owed.

Instead, they must claim for money owed though the Redundancy Payments Service, but can only claim for a maximum of £508 a week.

One worker told Hull Live they were owed around six weeks work – totalling “thousands of pounds”.

The letter, sent by Insol Group on behalf of administrator Bridgewood, said: “Due to the company’s current financial position, it is not able to make payments to you for monies due such as arrears of pay, holiday pay, redundancy pay and compensatory notice pay.

“Under the provision of the Employment Rights Acts 1996, you may be entitled to claim any monies owed to you by the company from the Redundancy Payments Service, subject to certain limits.

“At present the timescale for payments to be made by the RPS, who agree and pay these claims, can be 4-6 weeks from receipt of your claim.

“Please note the maximum amount the RPS will pay on all claims is £508 per week.”

A total of 47 employees at Matt Engineering have lost their jobs with immediate effect, with 12 more being retained to assist the administrators throughout the process.

When staff were told they were being made redundant, Humberside Police had to be called to the site.

A spokeswoman at the force confirmed they are investigating reports of criminal damage and theft at an engineering company in Hull.

A spokeswoman for the police said at the time: “We were called to an engineering company at 11.30am this morning following reports of threats of disorder at the premises.

“We attended the premises and are investigating reports of criminal damage, theft and public order offences."

The administrators said in a statement that “cash flow constraints” had impacted Matt Engineering’s trade, and that having assessed the company’s finances, the decision had been made to wind down the business.

Staff now face an anxious wait to find out if the RPS will pay out for the money they are owed.

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