Employee Severance Claims Settled For $650K

July 3, 2018

Employee severance claims against BAS were originally approximately $900,000, but were settled by the Government, acting on behalf of BAS, for approximately $650,000.

This is according to a recent ruling from the Court of Appeal which related to the ending of the contract between BAS and the Government  for services at the airport.

The ruling said, “The Contract was not extended beyond 31 March 2016, and instead, the Government awarded the contract to run the Airport after that date to a different facilities management company.

“The majority of the workforce employed by BAS at the Airport accepted employment with the new facilities management company, but did so without the continuity of their employment being preserved. This led to a large number of those employees bringing claims for severance against BAS under the Employment Act 2000, the value of such claims being said to amount to approximately $800,000.

“The claims for severance had originally been approximately $900,000, but were settled by the Government, acting on behalf of BAS, according to BAS’s submissions, for approximately $650,000. BAS claimed to have incurred legal costs dealing with these claims.

“A dispute arose between the parties as to whether the Government was required to indemnify BAS under the terms of the Indemnity in respect of various matters, which for the purpose of this appeal can be limited to the legal costs which BAS had incurred.”

The judgement follows below [PDF here]

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