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More than 230 former Borders UK employees who lost their jobs when the company closed down in December 2009 have been awarded the maximum 90 days' pay by an employment tribunal.
The tribunal ruled that the company and administrators had failed to comply with employment legislation covering consultation rights.
The company went into administration and closed down in December 2009, and the 233 ex-employees have been ordered to receive the 90 days pay, which is the maximum sanction.
However, the compensation will be paid out of state funds since there is no money available from the closure of Borders. State payments are capped at £400 a week for eight weeks, meaning some of the former employees will not receive the amount they are entitled to.
The tribunal's decision follows work by Paul Lee, national officer of the Retail Book Association, who told the tribunal that MCR's failure to comply was a bid to maximise sales in the run-up to Christmas before the business closed.
He said: "It was the weeks before Christmas and they didn't want staff being distracted by the correct consultation procedures."
Lee added that he will be writing to the secretary of state for business, innovation and skills to investigate companies and administrators who sidestep their responsibilities.
MCR was unavailable for comment.