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Making Redundancies

Getting the process wrong when it comes to making redundancies can be a costly mistake.

In this case however, one that may cost the taxpayers money.

Deloitte were appointed as administrators for Comet in 2012. According to a recent tribunal ruling, when making 7000 redundancies due to the closure of all the Comet stores, Deloitte failed to consult staff properly and this may result in a compensation claim of up to 90 days pay for each employee. Who foots the £25 million bill though? In this case It is likely to be the Government as Comet are insolvent and Deloitte were not the employer.

Deloitte may face a fine for failing to notify the BIS properly of the redundancies, but at £5,000 it seems a drop in the ocean compared to the overall cost of their mistake.

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