When failure to comply with collective redundancy obligations can be a criminal offence
Whilst ultimately the ex-directors at City Link were acquitted, these proceedings serve as a useful reminder of the importance of notifying the Secretary of State within the prescribed timeframes in advance of proposed collective redundancies. The obligation applies where an employer is proposing to dismiss as redundant 20 or more employees at one establishment within a 90 day period and the timeframe for notification depends on the number of employees affected. Importantly, failure to comply with the notification obligations can ultimately result in criminal liability and - since 12 March 2015 - an unlimited criminal fine.
Three ex-directors of collapsed parcel firm City Link have been cleared of failing to inform the government they were planning to make staff redundant.The Coventry-based firm employed 2,700 people across the UK - the vast majority lost their jobs on New Year's Eve.David Smith, 50, Robert Peto, 48 and Thomas Wright, 32, had denied failing to give 45 days' notice of dismissals.A magistrate dismissed the charge after hearing of a "firm" £17m rescue offer.Mr Smith, of Dickens Heath, near Solihull, Mr Peto, of Priors Marston, Warwickshire and Mr Wright, from north-west London, were found not guilty at Coventry Magistrates' Court.”
