Former employees of Horizon Communications who were let go from the company with no redundancy and severance payments are taking their case to a labour tribunal.

A notification of dispute was sent to Gilbert Darrell, the failed telecommunication company’s former chief executive, under the Trade Union and Labour Relations Consolidation Act 2021.

According to a letter seen by the Royal Gazette dated May 24 from the Department of Labour Relations Section, it was alleged that the company breached sections 8, 12, 18 (5), 20 and 23 of the act as read with the Employment Act.

The letter said this was for “unauthorised deductions, vacation pay, failing to provide remuneration allowance within the correct pay period, notice pay and severance pay”.

Mr Darrell was sent subsequent “failure to respond” letters including one on June 6 saying the matter could be referred to the Employment and Labour Relations Tribunal for determination to be made without his contribution to the dispute process if he failed to respond.

He has moved to distance himself from the dispute. He told The Royal Gazette he was no longer chief executive of Horizon, which ceased operations on June 26, and that Teneo, the joint receivers should be contacted.

“I no longer work for the company so other than being a claimant myself on redundancy and other legally owed applications, I have no other involvement.

“Teneo terminated all remaining staff on June 26, so other than themselves or their lawyers there is no one else who can officially represent the company in any proceedings.

“I am no longer an employee and now also a party to similar liabilities as the rest of the staff to the company.

“I do wish all the best to the staff as I'm obviously in the same position … and as former management, if there's anything I can do to help them I would gladly do so … however all company files are with Teneo and [lawyers] Conyers.”

Michael Morrison and Charles Thresh of Teneo declined to comment on the matter when contacted by the Gazette.

Teneo recently advertised that it was selling some of the company’s assets including electronic equipment, telecommunications equipment, hardware and cabling, data centre, office furniture and equipment.

It said: “Following viewing the items for sale, interested parties will need to submit their best and final offer[s] in writing … on a closed bid basis by 23.59 on July 25, 2023 for consideration. The JRs will revert to successful bidders within 24 hours of bidding closure.”

Horizon staff were laid off on January 12 after the company ran into financial trouble as a result of being unable to secure funding from the lender — the Bermuda Investment Fund, managed by Fortress Investment Group.

The fund was the idea of a few key senior executives of Bermuda’s reinsurance industry. Their concept was presented to the Progressive Labour Party government after it took office and an agreement was reached that granted the Government a seat on the board in exchange for a guarantee of the minimum management fee.

Mr Darrell said in May that secured creditors, such as the lender, were paid first and if there was surplus funds after those payments, they would be available to “unsecured creditors”, such as the employees.

However, he added that the joint receivers did not expect there to be a surplus of funds to do so.

The tribunal is set to begin on Monday.