Nomura bank to cut London jobs

It has been reported in the financial press that the equities and investment banking businesses of Japanese bank Nomura are facing major cuts over the next two years in a $1bn shake-up. The Japanese bank has approximately 2000 employees in London and it is likely that staff based in London and Europe will bear much of the pain from the shake-up. The Financial Times reports that Deutsche bank has also announced big job cuts.

So what does this mean for employees? If the banks are proposing to dismiss as redundant 20 or more employees within a period of 90 days, then they 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.

It is likely that at the end of the consultation period, those selected for dismissal will 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 offered a compromise agreement, please get in touch with our expert employment law solicitors today on 020 3950 5234 or email info@rllaw.co.uk.