Former Circularity Scotland staff launch compensation claim

The firm behind the country's delayed deposit return scheme went into administration last month resulting in staff losing jobs.

Former Circularity Scotland staff launch compensation claim Animaflora via iStock

Over 40 former employees of the collapsed company behind Scotland’s deposit return scheme are launching a compensation claim.

Circularity Scotland (CSL) went into administration last month resulting in staff losing their jobs.

Solicitors at Thompsons now claim employees were dismissed without proper statutory consultation.

They are lodging a “protective award” claim with the Tribunals Service on behalf of the workers.

Claimants could each receive several thousands of pounds from the Insolvency Service if the bid is successful.

David Martyn partner with Thompsons Solicitors and head of their employment law department said: “It’s very disappointing that such a profile organisation such as Circularity Scotland did not live up to their legal obligations and consult staff before the company went into administration.

“Staff had their employment terminated at very short notice leaving many in financial difficulty.

“We currently represent over 40 former Circularity staff who with our help are fighting to secure payments they are entitled to through the National Insurance Fund.

“That scheme is backed by the UK tax payer. We’re confident they should be able to secure meaningful compensation which will hopefully be of some comfort to them.”

Last month, the firm appointed joint administrators Blair Nimmo and Alistair McAlinden from Interpath Advisory.

CSL had been established by a number of drinks companies in 2020 to help implement the deposit return scheme (DRS).

The firm’s chief executive David Harris said the scheme remained “viable” even after the UK government imposed conditions including the removal of glass from the initiative.

However, following news from the Scottish Government that the scheme would not proceed until at least October 2025, the firm said it would be unable to meet significant contractual obligations without additional funding.