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Criminal charges for failing to notify BIS about redundancies

The Guardian has reported that Sports Direct chief executive David Forsey, along with a USC administrator, have been charged with a criminal offence following the collapse of fashion retailer USC and the consequential redundancies affecting over 80 staff.

The Guardian has reported that Sports Direct chief executive David Forsey, along with a USC administrator, have been charged with a criminal offence following the collapse of fashion retailer USC and the consequential redundancies affecting over 80 staff. The charge relates to an alleged breach of Ss.193 and 194 of the Trade Union and Labour Relations (Consolidation) Act 1992, i.e. failure to notify the BIS of collective redundancies at least 30 days before the first dismissal took place, where the maximum penalty for the offence is £5,000. Both pleaded not guilty at an initial hearing and the full trial is scheduled for March 2016. The Guardian has also reported that three former directors of City Link have been charged with the same criminal offence in relation to the collapse of the delivery company, which led to the loss of 3,000 jobs. The Guardian comment that the legal actions appear to mark a new approach to criminal proceedings against directors of companies that have gone bust and comes after the Government has been forced to pay out millions in compensatory payments to staff made redundant without proper consultation. 

Content Note

The aim is to provide summary information and comment on the subject areas covered. In particular, where employment tribunal and appellate court cases are reported, the information does not set out full details of all the facts, the legal arguments presented by the parties and the judgments made in every aspect of the case. Click on the links provided to access full details. If no link is provided contact us for further information. Employment law is subject to constant change either by statute or by interpretation by the courts. While every care has been taken in compiling this information, SM&B cannot be held responsible for any errors or omissions. Specialist legal advice must be taken on any legal issues that may arise before embarking upon any formal course of action.

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