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Reporting redundancies—lessons from City Link

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Published on: 24 November 2015

Published by a LexisNexis Restructuring & Insolvency expert

Table of contents

Original news
What offence were the directors charged with?
Why were the directors charged with this offence?
Does this offence apply to all failures to notify about redundancies? Or is it limited to certain categories of employees?
Is it common to see directors charged with this offence in an insolvency context?
Why were the directors acquitted?
What impact will this case have on sales of businesses in a distressed/pre-pack scenario?
What steps should directors take in light of these developments? Are IPs and those advising the company also potentially at risk?

Article summary

Restructuring & Insolvency analysis: If insolvency looms, how should redundancy be reported? Sarah Rushton, employment partner at Moon Beever, comments on the recent case in which three City Link directors were acquitted of criminal charges in relation to their alleged failure to give 45 days’ notice to the Secretary of State of their intention to make mass redundancies.

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