AstraZeneca to shell out £12M in severance dispute with workers at former England plant

When AstraZeneca sold its Avlon, England plant to CDMO Avara in 2016, it was touted as a lifeline for the drugmaker’s 210 on-site employees who faced termination. Three years later, with the plant back on life support, AstraZeneca will have to pony up after those former employees said the British drugmaker didn’t meet its contractual obligations. AstraZeneca will earmark £12 million to settle workers’ claims that the company refused to pay severance despite an agreement to honor “enhanced redundancy rights” if the plant closed within three-and-a-half years of the initial sale, according to the Financial Times. AstraZeneca said employees had been guaranteed severance pay in the event of a closure but that the drugmaker was not liable to cover that expense, FT said.

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