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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

EIP—Stuart Malcolm

EIP—Stuart Malcolm

EIP strengthens Commercial practice with a new partner

Ellisons—Francesca Brown

Ellisons—Francesca Brown

Ellisons welcomes Francesca Brown to Family team

Shakespeare Martineau—Marie Bourke

Shakespeare Martineau—Marie Bourke

Shakespeare Martineau strengthens Sheffield regulatory practice with new hires

NEWS
A wide-ranging Civil Way column highlights developments from insolvency procedure to employment law, but one case stands out for its lessons on bankruptcy, family homes and digital communications
A sprawling Intellectual Property Office battle between House of Fraser and Frasers Property has delivered a masterclass in modern trade mark law
Courts in England and Wales and Singapore are increasingly confronting complex disputes over international child relocation as families become more globally mobile
The government’s long-awaited family law reform consultation could mark a turning point for domestic abuse victims navigating financial remedy proceedings, but significant challenges remain
A new commercial court pilot giving the public access to documents used in hearings, including expert reports, is raising difficult questions about transparency and privacy
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