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Former Rosyth Royal Dockyard workers win tribunal claim over redundancy payments

FORMER employees of the Rosyth Royal Dockyard on the Firth of Forth have won their tribunal claim over the calculation of redundancy payments.

Unite the union confirmed on Tuesday that 27 of its members were part of a successful joint legal claim involving 48 workers at the dock, operated by marine infrastructure firm Babcock, who were made redundant in 2019. 

Company policy provided for an additional enhancement to the redundancy pay at the rate of one day’s pay for every six months of service, but a dispute arose over the correct calculation of the amount of day’s pay. 

The workers, also including members of the GMB and Prospect unions and represented by Thompsons Solicitors, were successful in arguing that the calculation should be based on the current daily hours — 9.25 hours per day for a four-day week.

An employment tribunal found that dockyard bosses had failed to apply a “reasonable, notorious and uniform” method for calculation and were in breach of contract. 

Compensation to members of the three unions totalling about £128,000 was ordered.

Those who were made redundant but weren’t part of the claim will also be eligible for payments dating back five years, which could involve up to 400 people.

The ruling also covers current employees eligible for enhanced redundancy pay, potentially costing the Ministry of Defence, which will underwrite the payments, up to £1.5 million in the future.

Unite industrial officer Bob MacGregor said: “The facts are that Rosyth Dockyard treated workers unfairly and they will now have to pay the costs associated with this botched process.

“The decision highlights the value of trade unions in supporting members and securing just outcomes, but also that employers will be held to account.”

A Babcock spokeswoman said the firm was surprised by the judgement but that the case was settled.

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