£12,000 compensation for redundant employees
Friday, 19th March 2010
Employers have been reminded of the regulations regarding redundancy pay after a Newport train driver was awarded £12,000 following a refusal of salary reduction and responsibility.
Stephen Morgan and a colleague were told that redundancy was imminent whilst working as train drivers for DB Schenker Rail UK Ltd in 2008. As part of the process, the pair were offered new roles within the company but would have endured an £8,000 pay cut.
After attempting their new positions as drive operators, the pair decided that a significant cut in wages and everyday responsibility was not an option and resigned within four weeks. But DB Schenker Rail refused to offer the employees the initial redundancy fee.
This week, Cardiff Employment Tribunal forced DB Schenker Rail to honour redundancy payments as the workers had not been offered suitable, alternative employment and were within their rights to refuse any new positions.
Tribunal judges awarded Mr Morgan, who has since found new employment, over £12,000 in damages and his colleague close to £8,000.
"Employees offered alternative employment have four weeks to consider the suitability of the new role,” their solicitor said. “These members decided a significant reduction in status and salary was unacceptable and as such they were entitled to turn down the roles.
“It should have followed that they received a redundancy payment. This has now happened thanks to the Employment Tribunal."
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