Nikal Ltd posts notice of intention to appoint administrators

We are sorry to read reports that the developer behind Birmingham’s landmark £350m Exchange Square project, Nikal Ltd, has posted a notice of intention to appoint administrators. 

Accounts have cited major global disruptions such as Brexit, Covid-19 and the war in Ukraine as key factors that have had a large impact on the business. Construction cost inflation over the past three years has also seen a significant rise.

Unfortunately, in many cases where administrators are appointed, a number of immediate redundancies are made. Often this happens without prior warning or any consultation process. Should administrators be appointed, we fear this may lead to redundancies.

A failure to follow a consultation process could lead to employees being able to claim compensation from an Employment Tribunal of up to 90 days’ pay. Such a claim could be pursued if:

  • 20 or more people were made redundant at the same workplace; and
  • There was no information and consultation process, or it wasn’t carried out correctly prior to making redundancies.

If you are worried about your position, please fill out this survey and a member of our employment team will contact you confidentially with more information.

Find out more by reading our FAQs.

There are strict Tribunal deadlines within which to pursue these claims, so you mustn’t delay if you believe you may be affected.