The Bookseller.com

8th September 2008

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Methuen settles tribunal

03.07.08 Benedicte Page

Methuen has settled a claim for unfair redundancy made by former publishing director Max Eilenberg. The agreement was made during an employment tribunal hearing on Tuesday (1st July) attended by Eilenberg and Methuen m.d. Peter Tummons, at which the publisher was said to have experienced "significant financial malaise" last year.

Eilenberg, who left Methuen in July 2007 after eight years, claimed he had been unfairly selected for redundancy and that proper procedures were not followed when he lost his job. Methuen's case was that Eilenberg had been made redundant for financial reasons because his role made him the most expensive employee in the company.

The publisher's legal representative said that following the sale of Methuen Drama to Bloomsbury in 2006, the publisher's turnover had dropped from £2m down to £600,000 in 2007, while profit fell to £46,000 in 2007 "despite cost cutting, and cost cutting for every employee".

He added: "There is a likelihood we will concede that statutory procedure was not complied with, but we think had it been dealt with properly, Eilenberg would [still] have been selected for redundancy."

Eilenberg's lawyer criticised Methuen for failing to bring full financial or contractual documentation to the tribunal, claiming that the publisher had provided "sketchy and highly selective disclosure of figures", and "had not taken the case seriously".

A compromise agreement was made between the parties, and the tribunal adjourned the case pending payment by Methuen to Eilenberg of an undisclosed sum.

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