Woolworths staff win £67.8m payout
More than 24,000 workers who were made redundant when the chain collapsed in 2008 will be awarded 60 days' pay, a spokesman said.
Usdaw won the compensation following an employment tribunal, where it claimed the administrators had failed in their legal duty to consult with the union before making redundancies.
However, the compensation will not apply to 3,000 former employees who worked in smaller branches where fewer than 20 redundancies were made, the spokesman added.
John Gorle, Usdaw national officer, said: "While the award is never going to fully compensate people for losing their jobs, I'm sure our members will welcome the money and appreciate the effort Usdaw has made to secure the compensation for them. Cases like this once again demonstrate the immense value of belonging to a trade union.
"However, I'm once again bitterly disappointed that a tribunal has limited the scope of the award. The fact that some of our members won't be compensated simply because their store had less than 20 employees is just plain wrong and shows the gaping loophole and injustice of the current legislation.
"Nearly 30,000 employees were made redundant from Woolworths at the same time and for the same reason, so to suggest 3,000 of them didn't constitute a collective redundancy is a nonsense."
Usdaw general secretary John Hannett added: "My delight at the award for the vast majority of our members is tempered by the clear injustice that workers in smaller stores could miss out.
"Usdaw thinks that the UK's current interpretation of the law on collective redundancies is both unfair and possibly a breach of the European Directive which seeks to protect workers in large-scale redundancy situations. We are taking further expert legal advice and it is highly likely we will appeal against this part of the judgment."
© 2012 Press Association