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.