UBS announces 10,000 job cuts and redundancies
Swiss bank UBS has announced it is cutting 10,000 jobs worldwide as it slims down its investment banking activities. To read the Bloomberg news report in full, please click here.
It is likely that UBS will shortly commence a redundancy consultation process and inform employees that their jobs are potentially ‘at risk’ of redundancy. The bank must collectively consult with ‘appropriate representatives’ (trade union representatives or elected employee representatives) of the bankers. The relevant legislation is s.188 of the Trade Union and Labour Relations (Consolidation) Act 1992.
A dismissal by reason of redundancy will be unfair if there was no real redundancy situation, the employer failed to consult, the employee was unfairly selected or the employer failed to offer suitable alternative employment.
At the end of the consultation period, those bankers selected for dismissal will probably be offered compromise agreements. A compromise agreement is a legally binding agreement either during or following the termination of your employment, and which brings the employment relationship to an end. A compromise agreement normally provides for a termination payment, in return for which an employee agrees not to pursue any claims against the employer. In order for a compromise agreement to be binding, an employee must receive advice on the terms and effect of the agreement from a solicitor.
At Rahman Lowe Solicitors, we have significant experience of advising on compromise agreements and negotiating amendments to terms, if necessary. If you have been selected for redundancy or offered a compromise agreement, please get in touch with our expert employment law solicitors today on 020 7956 8699 or email email@example.com.