The company, which went under last summer at the loss of 135 jobs, failed to consult the workforce about their redundancies, in breach of UK employment law.
Thompsons Solicitors acted for dozens of Land Engineering’s former staff and helped them win what is known as a Protective Award.
Land Engineering had offices in Glasgow, East Ayrshire, North Lanarkshire, South Lanarkshire, the Lothian’s and Fife.
Lawyers at Thompsons said they were happy with the outcome and again raised the issue of company directors breaking the law by not giving staff proper notice of redundancies.
David Martyn, a partner in the firm’s employment law department, said: “This is a fantastic result for former Land Engineering staff. These were people who would have been left with minimal statutory payments had we not undertaken this legal action. All too often company directors think they can flout the law and cast workers aside with little or no notice of redundancy.
“The law on this matter is quite clear but yet many companies continue to behave in this manner. It’s very important that the UK Insolvency Service uses the powers they have to prosecute company directors who behave in this manner. This would act as a strong deterrent against bosses behaving in this shabby and illegal way.”