Labour Research (November 2009)

Law Matters

Redundancy claims rise in recession

The recession has seen the number of claims over redundancy pay received by the employment tribunal service rise by almost a half.

Figures for 2008-09 show a year-on-year increase of 48% in redundancy pay claims received by the service and a 153% increase in claims for failure to inform and consult about redundancies.

Overall there was a 4% decrease in the number of claims successfully lodged if multiple claims by airline cabin crew group are excluded from the figures.

The maximum award in a race discrimination case was the rather considerable sum of £1.3 million. However, the average unfair dismissal award was a mere £7,959, although this should rise somewhat next year, as from 1 October 2009 the cap on “a week’s pay” increased to £380.

Also concerning is the persistently low rate of re-engagement: only 5% of dismissed employees end up returning to their old jobs.


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