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10 March 2011
Issue: 7456 / Categories: Legal News
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Redundancy challenge

Rising numbers of employers are fighting court cases over redundancy pay as former employees challenge the size of their settlements.

Redundancy pay cases accepted by employment tribunals shot up by 76% to 19,000 in the year to 1 April 2010, and a further 8,600 cases were accepted in the six months to 1 October 2010.

Law firm EMW says disputes may arise where employees in the “second or third wave” of redundancies receive a less attractive package than those who lost their jobs first.

Jon Taylor, head of employment at EMW, says: “This is a huge rise in claims well after the wave of redundancies we saw at the peak of the financial crisis, which suggests that with employment prospects remaining uncertain, employees that have been made redundant are more motivated to take legal action over the size of their redundancy payouts.

“Employers need to be aware that redundancy payouts could be seen as setting precedents.

“Departing staff will be particularly resentful if they feel that colleagues who performed less well and so were let go first have been rewarded with bigger payouts. One way employers can avoid this is by preventing departing staff members from talking about the terms of their settlement through a clear policy, and taking action if it becomes clear that employees are not abiding by agreements.”
 

Issue: 7456 / Categories: Legal News
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MOVERS & SHAKERS

Laytons ETL—Maximilian Kraitt

Laytons ETL—Maximilian Kraitt

Commercial firm strengthens real estate disputes team with associate hire

Switalskis—three appointments

Switalskis—three appointments

Firm appoints three directors to board

Browne Jacobson—seven promotions

Browne Jacobson—seven promotions

Six promoted to partner and one to legal director across UK and Ireland offices

NEWS

From blockbuster judgments to procedural shake-ups, the courts are busy reshaping litigation practice. Writing in NLJ this week, Professor Dominic Regan of City Law School hails the Court of Appeal's 'exquisite judgment’ in Mazur restoring the role of supervised non-qualified staff, and highlights a ‘mammoth’ damages ruling likened to War and Peace, alongside guidance on medical reporting fees, where a pragmatic 25% uplift was imposed

Momentum is building behind proposals to restrict children’s access to social media—but the legal and practical challenges are formidable. In NLJ this week, Nick Smallwood of Mills & Reeve examines global moves, including Australia’s under-16 ban and the UK's consultation
Reforms designed to rebalance landlord-tenant relations may instead penalise leaseholders themselves. In this week's NLJ, Mike Somekh of The Freehold Collective warns that the Leasehold and Freehold Reform Act 2024 risks creating an ‘underclass’ of resident-controlled freehold companies
Timing is everything—and the Court of Appeal has delivered clarity on when proceedings are ‘brought’. In his latest 'Civil way' column for NLJ, Stephen Gold explains that a claim is issued for limitation purposes when the claim form is delivered to the court, even if fees are underpaid
The traditional ‘single, intensive day’ of financial dispute resolution (FDR) may be due for a rethink. Writing in NLJ this week, Rachel Frost-Smith and Lauren Guiler of Birketts propose a ‘split FDR’ model, separating judicial evaluation from negotiation
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