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Lords to rule on lay-off law

16th March 1995, Page 8
16th March 1995
Page 8
Page 8, 16th March 1995 — Lords to rule on lay-off law
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Which of the following most accurately describes the problem?

• Hundreds of former Leyland Daf employees will find out today (16 March) if they can sue the receivers for millions of pounds.

If the House of Lords rules in favour of redundant employees it will affect workers made redundant between 1986 and March 1994 and retained for more than 14 days after the appointment of a receiver.

Some 950 former Leyland Daf workers could collect up to £2m between them.

Staff from the estimated 500 hauliers which went into receivership during this period could also make claims (CM 1117 August 1994).

The House of Lords' decision follows a High Court ruling last year on both Leyland Daf and Ferranti.

The High Court said that employees made redundant by both companies after 14 days of the receiver's appointment should be able to claim from the receiver.

Receivers from both companies appealed against the ruling but the House of Lords' decision will be final. However, if the receivers lose they may ask Parliament to introduce retrospective legislation. This could prevent any redundant workers from other companies from winning compensation.