Ex-KWM staff who took the firm to an employment tribunal have won a seven figure payout after ignoring their lawyers' advice to settle.
288 former King & Wood Mallesons Europe and Middle East staff brought their claim earlier this year on the basis that the firm failed to follow a 45 day consultation process before laying them off. KWM's administrator Quantuma conceded there had been a "technical breach" because the consultation "concluded early" when partners voted not to fund the firm and it collapsed into administration.
The claimants were advised by their lawyers, Herrington Carmichael, to accept the administrator's offer of under £800,000. But, burnt once before by trusting their betters, the KWM staff opted to gamble on the tribunal instead. This week it ruled in their favour and awarded them over £1m.
A spokesman for Herrington Carmichael said the case against KWM was "clear cut" because the firm had "failed to carry out a necessary legal process to consult with staff", but that its clients "were bold to take on a claim like this".
Those former KWM partners who shafted the claimants, and who in many cases wound up in cushy positions at other firms, won't have to dip into their own pockets for the compensation. It will come courtesy of the taxpayer from the Insolvency Service Redundancy Payments Service (Service Service), which can pay out a maximum £479 per week per person in respect of their redundancy pay period. And while the redundancy pay is a help, many staff were also left without jobs. A group of ex-partners did set up a hardship fund for them, and called on their former colleagues to donate, but it closed with a whimper and not a word on the amount it had managed to raise.
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288 former King & Wood Mallesons Europe and Middle East staff brought their claim earlier this year on the basis that the firm failed to follow a 45 day consultation process before laying them off. KWM's administrator Quantuma conceded there had been a "technical breach" because the consultation "concluded early" when partners voted not to fund the firm and it collapsed into administration.
The claimants were advised by their lawyers, Herrington Carmichael, to accept the administrator's offer of under £800,000. But, burnt once before by trusting their betters, the KWM staff opted to gamble on the tribunal instead. This week it ruled in their favour and awarded them over £1m.
Herrington Carmichael was cool with it, kind of. |
A spokesman for Herrington Carmichael said the case against KWM was "clear cut" because the firm had "failed to carry out a necessary legal process to consult with staff", but that its clients "were bold to take on a claim like this".
Those former KWM partners who shafted the claimants, and who in many cases wound up in cushy positions at other firms, won't have to dip into their own pockets for the compensation. It will come courtesy of the taxpayer from the Insolvency Service Redundancy Payments Service (Service Service), which can pay out a maximum £479 per week per person in respect of their redundancy pay period. And while the redundancy pay is a help, many staff were also left without jobs. A group of ex-partners did set up a hardship fund for them, and called on their former colleagues to donate, but it closed with a whimper and not a word on the amount it had managed to raise.
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All settlements still require sign off from the tribunal in any event so once again the staffers will not "opted to gamble on the tribunal" seriously - who does your research? Its embarrassing how the only bits of this story you got right are the bits you've ripped off from the law society gazette!
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They had the KWM employees over a barrel in confirming their exorbitant windfall of a fee for work which any one of the KWM could have done for the rest of the team if they were presented the contact details.
Well done HC for earning yourselves a windwall without having to do any work.
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