Ex-KWM staff offered £4,000 each over ‘technical breach’ during redundancy process

But the compensation deal is only on the table until Friday

Around 200 former King & Wood Mallesons (KWM) staff have been offered up to £4,000 each after administrators for the outfit’s now defunct European, UK and Middle East (EUME) arm accepted a “technical breach” had occurred during the redundancy process.

Earlier this year, Legal Cheek reported that a claim brought by ex-KWM employees had been given the go-ahead by an employment tribunal. The collective legal action relates to the outfit’s alleged failure to carry out a formal 45-day consultation process prior to axing jobs.

Now, KWM’s appointed administrators, Quantuma, have responded to the claims and accepted that there was an issue during the process. A spokesperson said:

Whilst the firm [KWM] had commenced and undertaken a consultation process, the consultation had concluded early due to the onset of the firm entering administration. As a result, there was a technical breach in respect of the required duration for the consultation process.

Claimants have been offered eight weeks pay capped at £479 per week up to a maximum individual payout of £3,832. If accepted, this will be paid out through the government’s Insolvency Service Redundancy Payments Service (ISRPS). Legal Cheek understands that the ex-employees — represented by Surrey law firm Herrington Carmichael — have until Friday to accept the offer. If they decline, a full employment hearing could be on the cards.

The offer follows the news that just 20 ex-KWM employees are set to benefit from the firm’s hardship fund. Launched in the spring, ex-partners were asked to contribute cash to help staff impacted by the outfit’s collapse. It is understood that between £50,000-£100,000 has been raised so far.

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