Over 100 former BHS employees have launched a claim against the retailer's administrators over their alleged failure to consult staff before they were made redundant.
Lancashire-based JWK Solicitors are representing the 111 staff that worked at BHS' headquarters in London. They allege administrators did not consult staff for at least 45 days before making them redundant.
Due in April, the employment tribunal could result in the staff being awarded up to 90 days’ wages worth between £500,000 and £1m. The amount is expected to be paid by the retailer and the government.
Carl Moran at JWK told City A.M: "The claim is in relation to the company's failure to collectively consult with the employees before they were dismissed as redundant.
"We hope we're successful and our clients achieve the maximum pay-out that the tribunal could award to them.
BHS went into administration in April last year leading to 11,000 job losses. The collapsed retailer's pension deficit stood at £571m when retail tycoon Sir Philip Green sold the company to serial bankrupt Dominic Chappell for £1 in 2015.
Duff & Phelps initially headed the administration of the retailer. However, FRP Advisory was brought in last summer as a concurrent administrator, and subsequently became sole liquidator in December.
A source told City A.M: "Liquidators are anticipating that they may have a difficult case to defend and are concerned about paying any more fees for advice on this employment case."
A spokesperson for Duff & Phelps said: "There are clear exemptions under insolvency legislation for redundancy consultation in insolvent companies, Duff & Phelps acts completely in line with this legislation when making redundancies in administration cases."
Green is nearing a £350m deal to compensate the pensions of ex-BHS workers, it was revealed over the weekend. Pensions of former BHS workers must be protected under any deal struck by billionaire, chair of the Work and Pensions Committee Frank Field said.