Fired MF Global Employees May Have Legal Claim
Last Updated on June 26, 2017
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At A Glance
- This Alert Affects
- Fired MF Global Employees
- Damages
- Fired MF Global employees who lost their jobs without proper notification may be able to make a claim for back wages and benefits.
- Company(ies)
- MF Global
- Additional Details
- Under the Worker Adjustment and Retraining Notification (WARN) Act, most employers with 100+ employees must provide a 60-day advance notice of mass layoffs. The New York State Worker Adjustment and Retraining Notification (WARN) Act requires that covered businesses provide employees with 90-days notice of a mass layoff.
- Date
- On November 11, it was reported that 1,066 MF Global Employees were fired without severance.
Fired MF Global employees may have legal recourse to seek compensation for back wages and benefits under the WARN Act. Under the WARN Act, employers with more than 100 or more employees must provide their workers with a 60-day (or 90-day in New York) notice before a mass layoff. If fired MF Global employees did not receive proper notification of their termination under the WARN Act, they may have a claim for compensation.
Terminated MF Global Workers
Reportedly, more than 1000 employees of MF Global Holdings LTD’s brokerage had been fired, occurring shortly after the parent company’s collapse. MF Global filed for Chapter 11 bankruptcy after a $6.3 billion high risk bet on bonds of indebted European nations drew regulator attention and a downgraded credit rating. Allegedly, some of the fired MF Global employees were helping in the investigation of the missing customer funds, which totaled roughly $600 million.
MF Global Lawsuit: WARN Act
The WARN Act intends to protect employees and their families by allowing for a transition period in between jobs, during which they can try to secure other work, pursue training and otherwise adjust to their job loss. If this company did not provide proper notice under the WARN Act, fired MF Global employees may have legal recourse. Potentially, in a WARN MF Global lawsuit, fired workers may be able seek an amount equal to back pay and benefits for the period of the violation.
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