Shearings staff who lost their jobs when the tour operator’s parent company Specialist Leisure Group (SLG) collapsed have won the first stage of a legal battle to receive compensation.

Lawyers representing the 937 workers say they could expect to receive a total pay-out of around £4m after an employment tribunal ruled they weren’t properly consulted about redundancy prior to Shearings calling in administrators in May last year.

The Shearings brand has since been bought and relaunched by Leger Holidays, but it has no link to SLG. Instead, the claim for compensation will be made to the Insolvency Service under its Redundancy Payments Service (RPS).

The Government-funded RPS can pay employees up to a maximum of eight weeks’ pay, plus redundancy pay, arrears of holiday pay and pay in lieu of notice.

Lawyers representing Shearings’ staff say they will be compensated up to 90 days’ gross pay, capped at £4,304 each.