UNION LOSES MOD JOB CUTS CHALLENGE

The action was brought by Prospect, which represents 16,000 defence professionals, claiming that the terms offered to staff were "unlawful".

But their case was rejected by Mr Justice Wyn William in London.

The union has said previously that whatever the outcome of case it will have a "major impact across the Civil Service".

Announcing his decision, the judge said he had "reached the clear conclusion that this claim for judicial review must fail".

During the recent hearing of the claim, Prospect's QC, Gavin Millar, told the judge that the judicial review application - contested on behalf of the Secretary of State for Defence - related to "a scheme for early release of substantial numbers of staff in the Ministry of Defence".

The challenge was brought over the decision to call for volunteers from affected groups of staff for selection for release on "flexible" early retirement or severance terms.

The union had sought a declaration from the court that the early release scheme (ERS) was "unlawful", arguing that the MoD should pay out under the "more generous" compulsory early retirement or severance (CER) terms.

In March the MoD published an ERS document inviting staff who wished to apply for early release on either FER or CER terms to apply by May 2, indicating that the selection panel results were expected to be issued in September.

The MoD argued that the offers it has made to its employees under the early release scheme were "properly made" within the the terms of the Civil Service management code and the Civil Service compensation scheme.