Aberdeen-based oilfield services firm OEM Group Scotland has let go of many of its employees as it goes into administration.
One employee has explained that they have been left thousands of pounds out of pocket in owed wages and expenses.
The Portlethen business, which previously employed 12 people, is no longer actively trading after cash flow pressures.
OEM let go of several members of staff as it went into administration with one former employee telling Energy Voice: “We got a phone call saying we are now redundant immediately nothing more nothing less.”
This came as a shock to staff as the news broke “the day before we were due our wages”.
Five jobs are being retained for an orderly closure of the engine services division of the business and to allow a sale of the rentals business.
The rentals arm remains operational for the off-hire of equipment whilst the administrators seek buyers for its specialist rental fleet of offshore drilling tools.
A person familiar with the matter explained that six offshore engineers, one workshop technician and one office staff were let go on May 21.
‘I have bills over my head’
A member of staff impacted by the process told Energy Voice that they have started hunting for another job.
The former OEM worker, who wishes to remain anonymous, said they were “left with no choice” but to look for alternative employment.
They explained: “I have a lot of bills over my head to cover which is tough enough with the current UK climate and no income to support them so I’m living out of what savings I have till my next pay check comes as we could be waiting weeks for redundancy money”
According to a source, employees who have been let go are not entitled to their full pay package as they wait for government redundancy support.
“The government doesn’t cover the full amount owed,” said one former worker.
Inviting ‘interested parties’ to get in touch
© Supplied by Google MapsRichard Bathgate and Donald McNaught, restructuring partners at Johnston Carmichael, have been appointed Joint Administrators of the oilfield services business
Richard Bathgate, joint administrator, said: “Following significant cash flow problems which the business could not overcome, OEM Group has unfortunately been placed into administration and we are now seeking a sale of the rental fleet and to realise assets for the benefit of creditors.
“We invite any parties interested to get in touch as quickly as possible.”
It is understood that the joint administrators have got in touch with an agent to assist current and former employees in making claims to the UK’s Redundancy Payments Service.
The role of this agent is to ensure that workers receive what they are owed as the administration process goes on.
Government redundancy support not covering ‘owed wages’
One out-of-pocket employee said: “We got offered our roles back earlier this week under another company.”
It is alleged that workers would “get our owed wages” if they decided to take up the offer but if they refused, they would “still get nothing apart from the government redundancy support.”
On LinkedIn OEM Group Scotland posted three weeks ago that it was looking to hire a finance administrator.
The job advert outlined that a successful applicant would be “responsible for keeping the financial records and accounts up to date to enable accurate reporting, cashflow projection and collection of payments.”
OEM Group has been contacted for comment on the situation.