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Bakery's Pension Gaps Filled by Public Funds
5 Dec
Summary
- Public funds will cover missing pension contributions for former Morton's Rolls employees.
- Workers faced up to a year of missed pension payments despite salary deductions.
- A two-year legal battle secured redundancy payments for 98 former workers.
National Insurance funds will now cover missing pension contributions for former employees of the collapsed Morton's Rolls bakery. The iconic west of Scotland firm, which went into liquidation in 2023, had reportedly failed to pay into pension schemes despite deducting funds from workers' salaries. Some employees faced gaps in their pension payments for up to a year, causing significant distress.
Former workers expressed frustration over the missing funds, with evidence showing deductions from payslips while letters from pension providers indicated non-payment. This situation arose amidst financial difficulties that led to the redundancy of 230 employees. A subsequent two-year legal dispute was necessary for 98 workers to secure redundancy payouts.
The Redundancy Payments Service is now disbursing funds, including pension payments, from the National Insurance Fund following an employment tribunal ruling. This ruling established workers' entitlement to payments, overturning the government's initial challenge. Legal representatives estimate over £1 million in total payments, including a 'protective award' for lack of consultation, will be covered by public funds.
