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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

Gateley Legal—Jack Kelly

Gateley Legal—Jack Kelly

Gateley Legal expands Midlands residential development team

Gibson Dunn—Richard Surtees

Gibson Dunn—Richard Surtees

Gibson Dunn adds employee benefits and executive compensation practice in London with partner Richard Surtees

Laytons ETL—Alec Cameron

Laytons ETL—Alec Cameron

Laytons ETL appoints new partner and head of intellectual property disputes

NEWS
A series of recent decisions has clarified important principles across property law, from perpetuities to lease renewals and public rights over land
A series of recent decisions has clarified important principles across property law, from perpetuities to lease renewals and public rights over land
Employers cannot rely on wellbeing services alone to defend workplace stress claims after a High Court decision awarding almost £1m to an overworked employee
Andy Burnham's brand of 'Manchesterism' could offer fresh thinking on legal aid and access to justice if it reaches Westminster, according to Roger Smith, NLJ columnist and former director of JUSTICE
The constitutional fallout from a change of prime minister, rather than the politics, is under scrutiny as questions arise over the limits of executive authority in a leadership transition
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