HES staff 'can get redundancy money'

Staff at a clinical waste firm that ceased trading last week can apply for redundancy payments, a UK government agency has clarified.

All 400 staff at Healthcare Environmental Services (HES) were given redundancy notices last week.

It had been thought they could not apply for statutory redundancy money because the firm has not yet declared insolvency.

But the Insolvency Service said many HES employees could apply regardless.

In guidance published on Friday, the service said it could pay a maximum of £508 a week to anyone who had worked for the company for at least two continuous years under a contract of employment.

It said it was in contact with the company about the information it needs in order to fast-track the assessment of redundancy claims.

The guidance added: "If the company enters into a formal insolvency process, you may be able to make an additional claim for money you are owed, for example wages, notice pay and holiday pay.

"If this happens we'll contact you to let you know."

HES lost its contracts with NHS Scotland and 17 NHS trusts in England last year after it was found to be stockpiling clinical waste - with HES managing director Garry Pettigrew Pettigrew blaming the UK government for the company going out of business.

Staff at the North Lanarkshire-based company did not receive their wages for last month on 28 December, with the company claiming it was unable to pay them what they are due. They were subsequently all given redundancy notices, but were told they would not receive redundancy payments from HES.

One HES driver, who did not want to be named, told BBC Scotland earlier this week that his colleagues were "skint", with some being forced to use foodbanks to feed their families.

It had been said they could not claim statutory redundancy from the UK-wide Redundancy Payment Service without a reference number from an insolvency practitioner - which Mr Pettigrew has not yet appointed.

Speaking BBC's Good Morning Scotland programme earlier on Friday, Mr Pettigrew said this was because he was still hopeful of finding a buyer to secure the company's future, and denied claims he had let staff down.

He said there had been "four or five" potential buyers for the business over the past month and a half, and pledged to "never throw in the towel" and to continue fighting to save the company "to the very end until there's no breath left in me".

Mr Pettigrew added: "I owe it to everyone to make sure this business survives and believe it or not I'm still fighting for the workers. I'm still fighting for this business and I will do that to the very end until there's no breath left in me.

"But it's not a case of me giving in to the government to suit their needs. This is a business that has been a success story - a multi-award-winning business for 23 years up until the fifth of October 2018, when the UK government decided that they wanted us gone.

"I have no qualms about the fight that we are putting together and we will continue that. If the government has a problem they need to step in here and actually pay our workers what they are legally entitled to within the payment protection scheme."

The UK government's Environment Agency has previously told the BBC that HES had "significantly and repeatedly breached its environmental permits by storing excess waste at a number of its sites".

It has said it took enforcement action and launched a criminal investigation after the company "continued to operate unlawfully".

Workers have previously raised concerns about a build up of waste at the company's main plant at Shotts, in North Lanarkshire. It also has 10 regional centres across the UK.

In Scotland, the NHS is now dealing with clinical waste under contingency plans until a new contract starts in April, while in England Mitie has taken over some health service contracts previously held by HES.

The Scottish Environment Protection Agency (Sepa) is monitoring conditions at Shotts and at the firm's other Scottish site in Dundee.

Sepa issued enforcement notices against HES on 12 September and 11 December, and last week said it was investigating whether criminal offences had been committed.