Decision ID: 000306

In October 1993 the 1971 Fund Executive Committee considered the question of whether, in the assessment of claims for loss of profit of fish processors, deductions should be made for salaries paid to employees who were retained even although there was not sufficient work to keep them occupied. The Committee decided that each claim had to be considered on its own merits taking into account whether the retention of the workforce was reasonable in the circumstances, considering iner alia the cost of making the employees redundant, the cost of re-employment, the time period during which there was insufficient work, the difficulties of re-employing a suitable workforce as well as factors of a non-economic nature, such as damage to the claimant’s reputation as a responsible employer if the employees were made redundant and the difficulties for those made redundant in finding new employment. The Committee instructed the Director to examine each claim in the light of these criteria and authorised him to take decisions in respect of individual claims.