Carillion: 11,800 wait to learn their fate as 4,400 more jobs are saved

More than 4,400 staff who worked for collapsed government contractor Carillion will keep their jobs, the Insolvency Service has said, after new companies were found to provide prison maintenance and services for military bases.

The latest update takes the total number of Carillion jobs that have been saved since the company’s failure last month to 6,668, more than a third of its 19,500-strong workforce.

The official receiver, the office sifting through Carillion’s contracts for the government’s Insolvency Service, raised hopes for the 11,800 staff who are yet to learn their fate, saying there was a “lot of interest” from companies keen to take on more of the collapsed company’s public and private sector work.

But a further 59 people who were working on construction projects have been made redundant, taking the running total of job losses to 1,048.

A spokesperson for the official receiver said: “Arrangements have now been finalised to transfer prison facilities management and defence bases catering and cleaning contracts to new providers and as a result we have been able to safeguard employment for a further 4,418 employees.

“Ongoing employment has been confirmed for more than a third of Carillion’s workforce so far as part of the liquidation.

“There is a lot of interest from potential purchasers in the contracts the company delivered which will see the number of jobs safeguarded continue to increase.

“Employment could not be secured for a further 59 employees working on paused construction projects and regrettably they will leave the business later this week.”

The official receiver advised those who have lost their jobs to seek support through the government’s Jobcentre Plus rapid response service and to make a claim for redundancy payments.

“Most employees who have transferred so far have done so on existing or similar terms and I will continue to facilitate this wherever possible as we work to find new providers for Carillion’s other contracts,” the spokesperson said.

“The process to find new suppliers to deliver Carillion’s contracts continues. I am continuing to engage with staff, elected employee representatives and unions to keep them informed as these arrangements are confirmed.”