The European Court recently ruled in favour of the UK Government over controversial redundancy laws, reducing the cost of laying off staff for UK businesses that employ 20 or fewer people.

Thousands of former Woolworths workers discovered recently that they will not be entitled to compensation after the retailer went into administration in 2008.  The ruling follows a four-year tussle between the British and European courts over redundancy procedures.

Employees at Woolworths stores with fewer than 20 staff were not included in collective redundancy consultations of 90 days as each store was regarded as an individual business and the consultation rules do not apply to firms that small.  As a result more than 3,000 former Woolworths staff did not receive payouts.  They argued that this was unfair since employees at larger stores did receive compensation.

The decision will provide relief for some businesses, particularly those with multiple sites, and greater certainty on an already complex area of law.

If you are considering making redundancies, then please contact Backhouse Solicitors for help and advice.

Tel:       01245 893400