Another 452 Carillion employees are made redundant following the firm’s collapse

A further 452 former employees will be made redundant following the collapse of the industry giant Carillion, the official receiver has confirmed.

It takes the total of job losses to more than 800 after it was revealed on Friday (2 February) that 377 would be made redundant. While at the same time, the official receiver has announced that a further 100 jobs have been safeguarded, adding to the 919 on Friday. The employees who have managed to find new work will be starting in a variety of roles connected with “private and public contracts across different parts of the country”. 

A spokesperson for the official receiver said: “As part of the ongoing liquidation of the Carillion group, we have reviewed additional public and private sector contracts, as well as core divisions of the business. We can confirm that we have safeguarded a further 100 jobs and these roles are linked to public sector contracts. Most staff will be transferring on existing or similar terms, something I will continue to facilitate wherever possible as we work to find new providers for Carillion’s remaining contracts. Unfortunately, 452 posts are being made redundant.”

Carillion, which employed close to 20,000 people in the UK was engaged in a variety of public sector contracts and collapsed last month with £1.3bn debt and a pension deficit estimated at up to £2.6bn. People who do face job losses will be entitled to make a claim for statutory redundancy payments.

“We appreciate this will be a difficult time for those who have lost their jobs,” the spokesperson added. “Jobcentre Plus’ Rapid Response Service stands ready to support any of these employees by providing advice and information so people can move into a new job as quickly as possible. People who have been made redundant will also be entitled to make a claim for statutory redundancy payments. Our efforts are focused on the smooth transfer of Carillion’s contracts to new providers and we will continue to keep Carillion’s workforce updated as these arrangements are finalised.”

The GMB union has hit out at the latest cuts and has called for the official receiver and PWC to “follow proper procedure” over redundancies.

Rehana Azam, GMB national secretary, said: “Loyal Carillion staff are being treated with utter contempt by PWC. The receiver told the task force that central office staff would remain in place until April – then this morning we see almost 500 are being booted out. It’s not just the fact so many are being made redundant – it’s the callous way PWC are going about it which is so outrageous. Some people received emails on Saturday simply telling them not to bother turning up for work on Monday. Others have been given less than a day’s notice.”

Today’s announcement comes just a day before former top bosses of the liquidated firm are called before MPs to explain how the firm spiralled into bankruptcy. Carillion’s former chief executive Richard Howson and former chairman Phillip Green will be among those pulled before the business and the work and pensions select committees to explain how the company ended with just £29m left in cash.