Labour Court recommends £26,000 severance addition for Krups Engineering workers

In 1999, the Labour Court recommended that Krups Engineering Limited add £26,000 to the severance package for about 26 former employees whose service had been broken by compulsory lay-offs of less than 26 weeks. The recommendation was signed on 31 May 1999. The Services Industrial Professional Technical Union argued the employees should receive severance based on their full service, consistent with established practice. The company said the closure agreement limited severance calculations to the latest period of employment and had been approved by the workforce. The Court said the breaks in service resulted from lay-offs outside the employees’ control and recommended that the company add the sum to the package. The union and company were to agree how it would be divided.