by LESTER CROSS
The former project director of the deeply troubled Avocet Group of companies is the latest ex-staff member to bring a successful employment tribunal case against the business for illegal deduction of wages.
Avocet IP Ltd., which indulges in the activities of patent and copyright agents has been ordered by a tribunal judge to pay Iain Munro more than £177,000 for the serious breach of employment law which took place while he worked for Avocet between 2018 and 2020.
Although he was declared bankrupt last October, Avocet's ex-chairman Martin Frost remains listed as a director of Avocet IP Ltd, according to Companies House records. The other directors are Dr Bob Jennings and Eirlys Lloyd Company Services Ltd.
The firm's registered address is at 120-124 Towngate, Leyland, near Preston which is also the offices of accountants RFM Preston Ltd. One of RFM's directors is Paul Newsham, formerly a board member of several Avocet companies.
There is currently an active proposal by the Companies House authorities to strike off Avocet IP Ltd. from the national register. The directors should have submitted annual accounts made up to December 31st 2020 by September 30th 2021, but they have yet to be lodged.
According to its last published accounts the business had fixed assets of £13 million and net current liabilities of £2.96 million. The ultimate controlling party is given as Avocet Natural Capital PLC, the group's parent company formerly chaired by Mr Frost.
Mr Munro's claim against Avocet IP was the subject of a hearing by a Manchester tribunal on March 14th before Judge Alan Johnson. The claimant was present but the respondents failed to appear.
A written judgment from the tribunal states: "The claimant was continuously employed by the respondent from 10 December 2018 until his effective date of termination on 20 November 2020 and did not transfer to Avocet Bio Solutions Plc in June 2019. (2) The complaint of unlawful deduction from wages contrary to section 23 Employment Rights Act 1996 was presented in time, is well founded and succeeds
"(3) The respondent shall pay to the claimant in accordance with section 24 Employment Rights Act 1996 compensation in respect of his successful complaint in the gross sum of £177,313.57 (One Hundred and Seventy Seven Thousand, Three Hundred and Thirteen Pounds Fifty-Seven Pence)."
In addition, the judgment points out: "Note: At the date of the hearing, the Tribunal noted that the respondent company had its application to strike off the Companies House register (company number: 11112409), dated 30 November 2021, suspended following an objection made on 8 February 2022. Although the Notice of Suspension is not clear, it is understood that this suspension will typically remain in place for a period of 6 months until a date in August 2022, and it will then be lifted or extended should the claimant or another make an appropriate application."
Various Avocet companies have already contravened employment regulations in a number of ways, as we have reported previously.
Last year former company employees Tristan Jeffrey and Sarah Shotton were among a number of individuals who successfully petitioned the tribunal service. Despite strenuous efforts by court officials no-one from Avocet could be contacted prior to hearings being held.
We were told recently by both Mr Jeffrey and Ms Shotton that they had yet to receive any kind of payment from Avocet's management.
Mr Frost made reference to the Munro case in a "memo" sent to Avocet shareholders on Monday of this week. This followed the disclosure that a new company called Therapeus Ltd. was to become a director of Avocet Natural Capital. And that the directors of Therapeus would include Donald Macleod and Scott Thomson, both shareholders in Avocet.
In his 'memo' Mr Frost wrote: "On Saturday 19th March I met up with Mr. Donald MacLeod who along Mr. Scott Thompson are keen to drive on Avocet Natural Capital Limited’s distribution. On Sunday 20th March whilst having breakfast with the MacLeod family; Dr. Bob Jennings via a phone call advised Donald that due to ill health Bob had missed a tribunal deadline causing Mr. Iain Munro in absence to obtain a £170,000 judgement against Avocet IP Limited.
"Appealing this judgement could delay the ANC Plc distribution for two years or more so Donald & Scott are mindful to use the £6 million tangible security granted to them in 2018 to purchase ANC Plc shares from potential smaller ANC Plc owners. On Thursday 24th March. Donald plans to issue a communique on this proposal which will incorporate from whence shareholders can expect money."
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