Lehman Brothers Charged Over Mass Retrenchment
Several weeks after declaring bankruptcy, Lehman Brothers is now facing charges for mass lay offs of IT support staff without prior notice. A software developer, Miron Berenshteyen, filed the $5 million lawsuit on behalf of 100 previous workers. Berenshteyen also worked for the investment bank and was laid off in the midst of Lehman's financial woes.
Majority of the retrenched workers were from the bank's Manhattan headquarters. The case was filed at the Southern District of New York bankruptcy court, accusing Lehman of breaching the Worker Adjustment and Retraining Act. With this legislative act, banks are required to provide employees a leeway of 60 days before they can get terminated. Furthermore, a written notice of the job cessation should be sent as demanded by the US law.
Should the case progress and Lehman loses, about 1,000 ex-employees will get a total of $5 million as a restitution for lost wages, benefits and other payments such as redundancy money and accrued holiday pay.
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