Post Office faces £2m payout over TUPE failures

The Post Office could be liable for a £2m payout if an employment tribunal rules that it acted unlawfully when closing Crown post offices.

A tribunal will hear claims this week from workers represented by the Communication Workers Union (CWU) that the Post Office failed to consult under the Transfer of Undertakings (Protection of Employment) Regulations (TUPE) when scores of larger Crown offices closed and transferred to retailers such as WHSmith.

About 1,300 employees could benefit from four test cases, according to the union, which could potentially lead to compensation in the region of £2m.

The CWU claims the Post Office sent letters to employees offering them enhanced voluntary redundancy money or redeployment, but did not offer TUPE. This meant workers missed out on their right to transfer to franchised offices.

CWU national official Andy Furey said: "The company has acted disgracefully against the spirit and intention of TUPE legislation, and this has cost the Post Office network dearly in experienced staff."