Tesco Seeks £4m Riot Compensation as Worker Dismissal Law Changes

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Tesco Seeks £4m Riot Compensation whilst Unfair Dismissal Laws Change [3rd Oct 2011]

It has emerged that Tesco has issued the police with a request for compensation for damage caused to their stores during the riots this summer. The compensation is for £3 million and comes from 20 Tesco stores around the country. The smallest request is for just £40. The claim is being made under the Riot Damages Act which allows the public and retailers to get compensation directly from the police rather than through their insurance. However the police have said that they cannot be sure they will be able to afford all of the claims made so far. Tesco is being criticised for their compensation request as other large retailers including Sainsburys have opted not to claim as they feel smaller retailers and the public deserve the compensation more. Tesco have responded by removing their £40 claim and saying it was an administration error. They have also said they could have claimed for more than £4 million. Tesco made a profit of £1.94 billion in the first half of this year.

The government has made a change to the rules surrounding the right to claim for unfair dismissal. The qualification period will be increased from 12 months to 2 years. The government have said that this was to increase confidence among employers and encourage them to employ more people, in addition it will save around £6 million each year. George Osborne has said that he realises that employment rights are important, but the unemployed should not be priced out of the market. He wanted to make it less risky for employers to take on new people. There will also be a fee imposed on people who want to take a case to a tribunal which the litigants will get back if they win their case. However the GMB Union has said that the move is unlikely to create jobs and that the real reason behind it is that the Tories are being backed by "predators" who want to strip rights from employees. They point out that just 0.2% of the workforce ever make an unfair dismissal claim and that the compensation paid averages at just under £5,000. Meanwhile the Chartered Institute of Personnel and Development have pointed out that the net result is likely to be more dismissals rather than more jobs.

A Palestinian activist has been given the green light to fight for compensation after he was held unlawfully on the orders of the home secretary. Sheikh Raed Salah is the leader of the Islamic Movement in Israel and had entered the UK despite being banned. He claimed that he had not been informed he was prohibited from entering the country and that he was let through at Heathrow. However three days into his stay he was detained and taken to a police station. He had been due to make speeches at a number of meetings. He was served with a deportation notice which was challenged. It has been agreed that he was detained unlawfully. It is thought that any compensation will be relatively small as it only covers two days. The judge criticised the border agency and said they missed a number of opportunities to refuse entry.

A case between two billionaires is set to become one of the UK's most expensive privately funded litigations in history. Chelsea FC owner Roman Abramovich and political exile Boris Berezovsky have entered into an argument over shares in a Russian oil company. Berezovsky is claiming that Abramovich forced him into selling his shares at a fraction of their true value. He wants £3.2 billion in compensation and another £363 million from another deal which went wrong. It was heard in the court that the two men had worked together on the Russian oil company deal and secured huge wealth. However it was claimed that Abromovich had profited from the fact that Berezovsky had been forced to leave Russia after he fell out with those in power. The lawyers are claimed that the football club owner held wealth and power above friendship and took advantage of a difficult situation unfairly.

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