RECENT redundancies could force the States to review employment laws to bring Guernsey into line with the UK and the rest of Europe.
Commerce and Employment will be be reviewing the issues over the coming weeks.
‘Naturally, redundancy will be covered in these discussions. Further comment will be made by the department once these deliberations have taken place,’ said a spokesman.
That will not help the more than 70 people who were put out of work following the collapse of Woolworths but could safeguard employees in the future.
There is some legislation in place. If an employee feels they have been unfairly dismissed they can take their plea to an industrial tribunal and be awarded up to six months’ salary. In the UK, there is no upper limit.
‘We have got a degree of employment protection in one sense but if a company closes down in the UK, assuming the firm has money when it goes into administration, employees will get a redundancy payout,’ said Advocate Mark Dunster (pictured).
In such a situation as UK staff of Woolworths are now in, one-and-a-half weeks’ salary for every year worked will be awarded, but capped regardless of salary at £330 per week. Employees take priority over suppliers when a firm goes into administration.
If the company has no money at all, staff will receive statutory redundancy payments but, according to Woolworths administrator Deloitte, Guernsey staff will receive nothing as there is no Redundancy Payments Office equivalent.
Advocate Dunster said that if Guernsey was to make implementing such legislation a priority, it could be done within six months to a year.
‘Europe has much tighter employee-friendly legislation and there are some reasons to argue we should be in kilter with Europe and the UK because, as it stands, we are out on a limb,’ he said.
Employers are free to make a non-contractual redundancy payment but that is at the discretion of the individual business.
In Jersey, 2,500 people have signed a petition calling for redundancy pay for Woolworths staff and work is under way to change the law.
An amendment to the Employment (Jersey) Law 2003 was drafted last year which, if adopted by the States, would protect people who have been made redundant.
Article posted on 12th January, 2009 - 11.30am
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