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Higher unfair dismissal and redundancy payouts will increase cost to business by £84 million per ye
Archived article dated Thursday June 18th 2009
Department for Business Innovation & Skills (BIS) confirms massive cost to business (at least £70 million per year) of increasing statutory redundancy payments.
Commenting on the news, Martin Warren, head of employment law at Eversheds international law firm says: “Businesses already counting the cost of increased statutory redundancy payments will be dismayed to learn of the changes to unfair dismissal compensation. “Increasing payouts for unfair dismissal will cost business as much as an extra £14 million, a major blow at a time when it can least afford further costly legislation. In the long run these changes could disadvantage younger and lower paid workers, who will usually prove cheaper to make redundant and could therefore find themselves targeted for redundancy ahead of older or better paid colleagues.”
For further information please contact martinwarren@eversheds.com
Tagged as: eversheds | unfair dismissal | tribunal |
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