Lehman Brothers’ staff to receive no redundancy pay

Lehman Brothers employees who were made redundant after the bank collapsed will receive no redundancy pay from the firm.

The 750 staff who lost their jobs have been paid their last month’s salary, but will receive only statutory redundancy pay.

Administrator PriceWaterhouseCoopers (PWC) confirmed that most of the redundancies came from the investment bank’s fixed income and personal investment management businesses, which were primarily run from its Canary Wharf office in London.

A spokesman said the former employees were paid up until September 30 and one to one meetings with PWC have been offered.The individual sessions offer former employees the option to discuss how loosing their job has impacted them personally.

Tony Lomas, partner at PWC, said: “It is extremely disappointing that despite exhausting all avenues these jobs could not be saved. As we move into our third week, we continue to be focused on maximising the value of recoveries for creditors, whilst minimising the impact on other stakeholders as much as possible.”

Around 4,000 jobs were saved after the Japanese bank Nomura bought parts of the Lehman Brothers in Europe and Asia. Nomura has confirmed plans to make its remuneration package more competitive to retain staff.