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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

Flint Bishop—Charlotte Harris

Flint Bishop—Charlotte Harris

Sheffield expansion continues with appointment of commercial property partner

Browne Jacobson—Paul Duggan

Browne Jacobson—Paul Duggan

Browne Jacobson strengthens banking and finance practice with latest partner appointment Paul Duggan

Ward Hadaway—Chris Piggott

Ward Hadaway—Chris Piggott

Employment partner joins Ward Hadaway

NEWS
The Law Society RFC Festival of Sport returns next month, bringing together legal and financial services professionals for one of the sector’s largest annual sporting events
Legal aid deserts leave almost one in four without adequate access to justice
The Solicitors Regulation Authority (SRA) has warned solicitors and law firms that using artificial intelligence does not alter their professional obligations, amid concerns over inaccurate legal material and client confidentiality
From forgotten interest claims to case-management appeals, a string of procedural developments offers useful—and occasionally cautionary—lessons for practitioners

Jonathan Fisher KC highlights that it now accounts for around 40% of criminal offences, with roughly 70% involving technology, and argues that the UK cannot simply prosecute its way out of the problem. Detection, investigation and prosecution all require improvement, while different fraud types demand tailored responses.

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