20 October 2011
Tribunal orders council to enhance redundancy settlements
An employment tribunal has ordered a council to award additional compensation to six sacked members of staff after it was found a breach of contract had occurred.
According to The Comet, Letchworth Garden City Council will grant an extra £80,000 in damages to its former employees on the grounds that it altered the contractual terms of their agreements after taking over from the previous administration.
Therefore, the local authority is now legally obliged to abide by the terms listed, stating that workers would be entitled to severance packages of up 20 weeks' wages as well as either 12 months' notice or pay, as this was not "irrationally generous".
Indeed, the tribunal ruled that terms laid down by the last authority involved "rational", "clear" and "carefully calculated limits" on its own resources.
This comes after Herald Scotland revealed that Edinburgh City Council is facing redundancy payments of up to £2 million after nine people voluntarily left the organisation.
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Posted by Chris Stevenson