New ruling on collective consultation for redundancies

21 October 2013
New ruling on collective consultation for redundancies

A decision from the Employment Appeal Tribunal (EAT) means that the legal obligation to consult collectively should be calculated based on the potential redundancies across an entire business, rather than at each individual site.

The law provides that the obligation to consult collectively is triggered where an employer proposes to make 20 or more employees redundant at an establishment within a period of 90 days or less.

In an appeal brought by ex-employees from Woolworths and Ethel Austin, it was argued that the employer ought to have collectively consulted over redundancies when it went into administration.

Thousands of employees were made redundant nationally, however each site was interpreted as "one establishment" with 20 employees or less therefore collective consultation was not thought to be required. However the EAT ruled to the contrary.

Until the courts or new legislation overrides this decision, employers should ensure that potential redundancies are calculated across the business within a 90-day period, and not only at individual sites, in order to decide whether collective consultation is required by law.

For further information, see the redundancy and dismissals section of HRBird.

Post a comment
Contact us
Follow HRBird on facebook
Follow HRBird on Twitter
RSS feed icon
©HRBird - All rights reserved