Insurer apologises over bonus row

The company is shedding jobs in Perth and Glasgow

An insurance giant has apologised for a cash bonus offer to staff who recommend a friend for a job, weeks after announcing 450 workers were to be cut.

Norwich Union handed out leaflets at its Perth call centre promising £250 to employees who could put forward someone they knew for recruitment.

The insurer announced last month it would shed 200 posts in Perth and a further 250 in offices around Glasgow.

Aviva, Norwich Union's owner, currently employs 3,700 staff in Scotland.

A Norwich Union spokeswoman said: "The recommend-a-friend scheme has been in place for a number of years,

'National company'

"It is a good way for staff to introduce suitable candidates to the company for specific vacancies where appropriate.

"We're sorry this has caused some sensitivities in this case. But we're a national company and this is just one method we use to aid recruitment when needed."

A total of 4,000 Norwich Union jobs are being cut in a bid to save £250m.

Norwich Union's owner, Aviva, said 1,000 jobs would be moved to India and another 500 information technology staff would be out-sourced.

The firm said more customers were buying policies online.

The redundancies in Glasgow affect 'back-office' posts in administration and processing.

The customer service centre in Pitheavlis, Perth, has been earmarked for the brunt of the Scottish job losses.