Personnel Today
  • Home
    • All PT content
    • Advertise
  • Email sign-up
  • Topics
    • HR Practice
    • Employee relations
    • Equality, diversity and inclusion
    • Learning & training
    • Pay & benefits
    • Wellbeing
    • Recruitment & retention
    • HR strategy
    • HR Tech
    • The HR profession
    • Global
    • All HR topics
  • Legal
    • Case law
    • Commentary
    • Flexible working
    • Legal timetable
    • Maternity & paternity
    • Shared parental leave
    • Redundancy
    • TUPE
    • Disciplinary and grievances
    • Employer’s guides
  • AWARDS
    • Personnel Today Awards
    • The RAD Awards
  • Jobs
    • Find a job
    • Jobs by email
    • Careers advice
    • Post a job
  • XpertHR
    • Learn more
    • Products
    • Pricing
    • Free trial
    • Subscribe
    • XpertHR USA
  • Webinars
  • OHW+

Personnel Today

Register
Log in
Personnel Today
  • Home
    • All PT content
    • Advertise
  • Email sign-up
  • Topics
    • HR Practice
    • Employee relations
    • Equality, diversity and inclusion
    • Learning & training
    • Pay & benefits
    • Wellbeing
    • Recruitment & retention
    • HR strategy
    • HR Tech
    • The HR profession
    • Global
    • All HR topics
  • Legal
    • Case law
    • Commentary
    • Flexible working
    • Legal timetable
    • Maternity & paternity
    • Shared parental leave
    • Redundancy
    • TUPE
    • Disciplinary and grievances
    • Employer’s guides
  • AWARDS
    • Personnel Today Awards
    • The RAD Awards
  • Jobs
    • Find a job
    • Jobs by email
    • Careers advice
    • Post a job
  • XpertHR
    • Learn more
    • Products
    • Pricing
    • Free trial
    • Subscribe
    • XpertHR USA
  • Webinars
  • OHW+

Economics, government & businessLatest NewsEmployment lawJob creation and lossesRedundancy

Experts warn of contract chaos after MG Rover redundancy row

by dan thomas 10 May 2005
by dan thomas 10 May 2005

The news that 80 MG Rover workers may be entitled to a full redundancy package as they are actually employed by Phoenix Venture Holdings should “strike fear into the heart” of group companies, lawyers have warned.

The 80 staff are reported to be planning to seek enhanced redundancy packages or alternative employment because their contracts state that Phoenix Holdings is their official employer.

If Phoenix is found to be their employer, it will be obliged to pay out more than the standard £5,000 redundancy payout available to workers forced out of their jobs as a result of the car manufacturer’s insolvency.

Failure to carry out correct redundancy procedures could lead to unfair dismissal claims and subsequently an additional payout, according to Shona Findlay, of the people services team at law firm McGrigors.

“This should strike fear into the heart of group companies,” she said. “They may have to reconsider their policies and contracts, otherwise they could be liable [for debts incurred by insolvent companies they own].”

Changes to employment policies and contracts should be driven by HR departments, Findlay said.

“HR is at the coalface of this issue,” she said. “[HR professionals] will be familiar with the content of employment contracts, and this sort of issue will not necessarily be on the board’s agenda, despite its importance.”

However, employers need to do more than simply make cosmetic changes to contracts, as tribunals will always look at the bigger picture, such as who actually pays the staff, who looks after their health and safety and so on, Findlay said.

“Reviewing the contract doesn’t mean that you are out of the woods,” she said.

“Employers must look at the true position and reflect that in the contract, not try and create a position [for legal purposes].”


Avatar
dan thomas

previous post
Another brick in the wall: what are companies spending on training?
next post
Numbers of ‘managers’ rise inexorably

You may also like

Top earners’ pay soars by 10% while lowest-paid...

8 Aug 2022

National Payroll Week: A compliance guide for SMEs...

8 Aug 2022

‘Pushy’ lawyer awarded £152k for sex discrimination

8 Aug 2022

Something new to get stressed about: hello Premier...

5 Aug 2022

Economic outlook slows hiring despite skills shortfalls

5 Aug 2022

ESG for HR: Emma Burrows talks to Oven-Ready...

5 Aug 2022

How introverts can become brilliant leaders

5 Aug 2022

EU member states to make carer work-life balance...

5 Aug 2022

Office could be sanctuary for workers fearing winter...

4 Aug 2022

Inflation forecast to hit 13% in autumn says...

4 Aug 2022
  • 6 reasons why work-based learning is better than traditional training PROMOTED | A recent Fortune/Deloitte survey found that 71% of CEOs are anticipating that this year’s biggest business disrupter...Read more
  • Strengthening Scotland’s public services through virtual recruiting PROMOTED | This website is Scotland's go-to place for job seekers looking to apply for roles in public services...Read more
  • What’s next for L&D? Enter Alchemist… PROMOTED | It’s time to turn off the tedious and get ready for interactive and immersive learning experiences...Read more
  • Simple mistakes are blighting the onboarding experience PROMOTED | The onboarding of new hires is a company’s best chance...Read more
  • Preventing Burnout: How can HR help key workers get the right help? PROMOTED | Workplace wellbeing may seem a distant memory...Read more

Personnel Today Jobs
 

Search Jobs

PERSONNEL TODAY

About us
Contact us
Browse all HR topics
Email newsletters
Content feeds
Cookies policy
Privacy policy
Terms and conditions

JOBS

Personnel Today Jobs
Post a job
Why advertise with us?

EVENTS & PRODUCTS

The Personnel Today Awards
The RAD Awards
Employee Benefits
Forum for Expatriate Management
OHW+
Whatmedia

ADVERTISING & PR

Advertising opportunities
Features list 2022

  • Facebook
  • Twitter
  • Instagram
  • Linkedin


© 2011 - 2022 DVV Media International Ltd

Personnel Today
  • Home
    • All PT content
    • Advertise
  • Email sign-up
  • Topics
    • HR Practice
    • Employee relations
    • Equality, diversity and inclusion
    • Learning & training
    • Pay & benefits
    • Wellbeing
    • Recruitment & retention
    • HR strategy
    • HR Tech
    • The HR profession
    • Global
    • All HR topics
  • Legal
    • Case law
    • Commentary
    • Flexible working
    • Legal timetable
    • Maternity & paternity
    • Shared parental leave
    • Redundancy
    • TUPE
    • Disciplinary and grievances
    • Employer’s guides
  • AWARDS
    • Personnel Today Awards
    • The RAD Awards
  • Jobs
    • Find a job
    • Jobs by email
    • Careers advice
    • Post a job
  • XpertHR
    • Learn more
    • Products
    • Pricing
    • Free trial
    • Subscribe
    • XpertHR USA
  • Webinars
  • OHW+