Deutsche Bank Begins Process of Making 18,000 Staff Redundant
Deutsche Bank employees in London have been sent home today as the German multinational began the process of cutting 18,000 jobs worldwide.
The redundancies are part of the company’s plan to radically reorganise its operations, significantly reducing its investment banking business, including share trading. With much of this work being carried out by staff in London and New York, it is likely that a large number of Deutsche Bank’s nearly 8,000 UK employees are facing redundancy.
The BBC reports that share trading staff in London, New York and Tokyo have been told their jobs were being cut, with around 800 people in London working in this part of the bank’s operation. Deutsche Bank is one of the City of London’s biggest employers, meaning many of those made redundant may struggle to quickly find other work in the same sector.
A Deutsche Bank spokesperson said the aim was to make the bank “leaner and stronger” as part of its “ongoing commitment to improve long-term profitability and returns to shareholders”. The move comes in the wake of a failed merger with Commerzbank earlier this year.
The job losses are part of Deutsche Bank’s wider strategy to cut its number of employees from almost 92,000 currently down to 74,000 by 2022. How many of those redundancies will fall on the bank’s UK employees is as yet unclear, with most London-based Deutsche Bank staff currently in the dark about their future with the company.
How can UK Deutsche Bank workers get the best redundancy package?
Any UK employee of Deutsche Bank who is made redundant and has at least 2 years of continuous employment with the company will be entitled to a ‘statutory redundancy payment’. The value of an individual’s statutory redundancy payment will be based on the number of years they have worked for the bank and their age during their employment. The maximum payment available is currently capped at £15,240.
However, some employees are likely to be offered enhanced redundancy payments that go beyond the statutory redundancy payment they are entitled to. This can significantly increase the amount of redundancy compensation an employee receives, but will normally be conditional on the employee entering into a ‘settlement agreement’.
A settlement agreement is a legally binding document with which an employee agrees not to bring a claim in an employment tribunal with respect to a specific issue (in this case, being made redundant) normally in exchange for a financial payment.
As an employee, you must take independent legal advice before signing a settlement agreement, otherwise it will not be valid. Your employer will normally make a contribution to the cost of this advice and may recommend a solicitor, but it is important to realise you are under no obligation to use the legal representative suggested by your employer. You have the right to choose your own solicitor and IBB Solicitors can help to ensure you get the best possible legal advice. You can have complete confidence that your solicitor is truly independent.
For large-scale redundancies, like the situation facing Deutsche Bank employees, employers will often use a ‘template settlement agreement’ where all employees will be asked to sign a similar agreement. This can involve employees being called in on a single day or over several days, with legal advisors provided on site. If you find yourself in this situation, you may still want to use you own solicitor to make sure you get the best available redundancy package for you.
Contact us now for independent redundancy advice
If you are a Deutsche Bank employee facing redundancy, please contact specialist employment lawyer Marc Jones for clear, practical guidance on the next steps you need to take to secure the best possible redundancy package.
Simply email firstname.lastname@example.org now for immediate advice.
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