Alan McCormack | Senior Associate

Lego to cut 1,400 jobs

The famous toymaker, Lego, has announced alongside their half-year results that their revenue has fallen by 5%, with profits down 3% due to declining sales in their established markets within Europe and the US.

They currently employ 19,000 people across the world, including 900 in the UK, however as a result of the drop in sales, 8% of the global workforce will be made redundant by the end of the year as part of a major overhaul to reset the company, reduce their costs and simplify their increasingly complex business model.

Lego Group chairman Jorgen Vig Knudstorp has apologised for the changes which he understands will affect the lives of many of his colleagues but that unfortunately the process is essential for the future development of the company.

He has confirmed that those affected by these job cuts will be offered redundancy packages and support as they move on.

When following the process of redundancy dismissal, an employer should consider:

  1. If they have satisfied the legal definition of redundancy, as set out in section 139 of the Employment Rights Act 1996;
  2. If there are contractual redundancy procedures, whether express or implied which may apply;
  3. Alternatives to redundancies and if no suitable alternatives can be identified, ensure that they are able to show this;
  4. A fair procedure involving individual and collective consultation in order to make dismissal decisions which are fair and reasonable in the circumstances;
  5. Identifying employees who would be entitled to a statutory or contractual redundancy payment, in addition to any other benefits that may be due; and
  6. Written confirmation of redundancy dismissal with the employees right of appeal

The Employment Team at Jackson Boyd specialises in assisting employers through the process of redundancy, as well as helping workers who believe they have been unfairly dismissed as a result of a redundancy procedure.

Please contact us online by clicking here or speak to a member of our specialist team on 0333 222 1855.

Alan McCormack

Alan McCormack

Employment Law Team

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