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BIS prosecution of ex-City Link Directors for failing to notify redundancies fails – Legal Update

A case brought by the Department of Business Innovation and Skills (BIS) against three individuals for failing to notify the Secretary of State of redundancies ahead of the firm’s demise has collapsed.

 

A case brought against three ex-directors of City Link, under section 194 of the Trade Union and Labour Relations (Consolidation) Act 1992, who were alleged to have failed to give sufficient notice for redundancy plans, has failed.
 
Employers planning to dismiss 100 or more staff at one location must notify the Secretary of State 90 days in advance. Failing to do so carries a fine of up to £5,000.
 
City Link was placed into administration on 24 December 2014, resulting in the loss of over 2000 jobs. BIS prosecutors alleged that the firm’s former managing director, finance director and a non-executive director became aware that redundancies were inevitable on 22 December 2014, but the Secretary of State was not notified until 26 December 2014, when it was lodged by the company administrator.
 
The judge ruled that no proposal was made on 22 December 2014 to make redundancies, and that the three defendants had every hope of saving City Link and its workforce by placing the company into administration. The three directors were consequently acquitted of the charge.

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Related Areas; Corporate Law