Share     Wed 23 April 2014

Redundancy

Legal Comment: Asking for redundancy volunteers

Tim Randles highlights the importance of properly managing the consultation and selection process.

In Stephenson College v Jackson, the Employment Appeal Tribunal (EAT) was asked to look at redundancy. The resulting decision is a helpful reminder about the purpose of selection and consultation, and the requirements placed on employers to consider ways to avoid compulsory redundancy. The...

Helpdesk: Paying SMP to a redundant employee

Q We have just had to make redundant one of our female employees who is currently on maternity leave and is still due a further 10 weeks of Statutory Maternity Pay (SMP). Can we pay what we owe her in SMP as a lump sum?   A You could, but it may be dangerous to do so. She could lose...

Enhanced redundancy justified

The Court of Appeal has confirmed that enhanced redundancy payments for older workers can be objectively justified. In Romilly Lockwood v Department for Work and Pensions and Cabinet Office, staff aged over 35 were offered better redundancy terms to reflect the comparative difficulties they...

Golden pay-offs for Olympic delivery team

  The Olympic Delivery Authority (ODA) spent more than £2 million on redundancy packages for 144 members of staff, according to its Annual Report and Accounts 2012/13.   Dennis Hone, Chief Executive of the body, had his employment terminated on 31 March 2013. His exit...

Tribunal reforms may not act as a deterrent

  Many companies could still be open to multiple claims that they cannot afford despite the employment tribunal reforms, according to LighthouseRiskServices.com.   The new rules are aimed at simplifying and streamlining the system, however the business law firm warned that they...

Legal Comment: True redundancy dismissals

Complex situations when making staff redundant are troubling employers and tribunals, says Tim Randles.

Redundancy dismissals have been troubling employers, employees and the Employment Appeal Tribunal (EAT) in recent months.   Fair reason for dismissal Redundancy is a potentially fair reason for dismissal. Where redundancy is the stated reason the tribunal will apply a three-step test...

Redundancy Payments: Making cutbacks

Dan Peyton explains the pitfalls of manufactured redundancies and enhanced termination payments.

  Speed Read Redundancy has become a standard practice for employers who wish to reorganise their workforce in an attempt to remain competitive in these challenging times. They often use money saved from salaries to fund developments in other areas of the business. However, sometimes...

BBC journalists strike over redundancies

  Journalists at the BBC are staging a 24-hour strike against compulsory redundancies.   The industrial action, carried out by members of the National Union of Journalists (NUJ), will end at 23.59 on Monday 18 February.   The NUJ believes that the corporation’s...

Redundancy consultation period to be halved

  Significant changes to the redundancy process, including a reduction in the consultation period, will come into effect from 6th April 2013.   Draft regulations contained within The Trade Union and Labour Relations (Consolidation) Act 1992 (Amendment) Order 2013 are expected to...

Businesses may have to retrain staff facing redundancy

  Businesses could be required to retrain staff they plan to make redundant under measures proposed in a European Commission report. The recommendations on corporate restructuring were backed by 503 Members of the European Parliament (MEPs). Spanish MEP Alejandro Cercas said that...

Collective redundancy changes “step in the right direction”

Changes to collective redundancies announced by Jo Swinson are a “step in the right direction” and have been welcomed by businesses. The Employment Relations Minister outlined the Government’s decision to reduce the 90-day minimum period before very large-scale job cuts can occur...

Owner-employee contracts to create “two-tier” labour market

  Owner-employee contracts would create a “two-tier labour market”, according to the Chartered Institute of Personnel and Development (CIPD).   The controversial plans from the Chancellor of the Exchequer would see staff relinquishing employment rights in exchange for...

High redundancy costs of Cameron’s Cabinet reshuffle

Taxpayers may  foot a £250,000 bill for redundancy payouts following the Cabinet reshuffle by Coalition leaders, David Cameron and Nick Clegg.   About one in four of the Government lost their jobs – 28 paid ministers and one unpaid – and as a result could receive...

Helpdesk: Termination of contracts and pay

Do you have a burning payroll question?

Q A client of mine has terminated his employee’s contract. The termination date is 31 October 2012 but the employer agreed to pay two months’ pay in lieu of notice. If the employee had been allowed to work his notice his leave date would be 31 December, at which point he would have...

Employment Case Law: Race discrimination

The latest decisions from employment tribunals on the cases that matter to you

Race discrimination Stevenson v Atos Origin IT Services UK Ltd [2012] All ER (D) 17 (Aug)   Summary The tribunal was to decide whether it had jurisdiction to determine the employee’s race discrimination complaint. The facts The employee was a British national and worked as...
 

 

 

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