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Prosecution of ex City Link directors fails
The Department for Business Innovation and Skills brought a case against 3 ex directors of City Link under TULR(C)A for failing to give sufficient notice of redundancies. The case failed. As is well known, where employers plan to dismiss 100 or more staff at one location they must notify the Secretary of State 90 days in advance and a failure to do so may bring a fine of up to £5,000 (at the relevant time – the fine is now unlimited).
City Link went into administration on the 24th December 2014 resulting in over 2,000 job losses. The prosecutors at BIS alleged that the firm’s former MD, FD, and a non-executive Director became aware that redundancies were inevitable on the 22nd December 2014 but the Secretary of State was not notified until 26th December 2014 when it was lodged by the company administrator.
The Judge ruled that no proposal was made on the 22nd December to make redundancies and that the 3 defendants had every hope of trying to save the company by placing it into administration. Consequently the 3 directors were acquitted of the charge.
This legal update is provided for general information purposes only and should not be applied to specific circumstances without prior consultation with us.
For further details on any of the issues covered in this update please contact Gemma Ospedale, Partner in Employment on 020 7583 2222.
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