The EAT has now published its decision in the landmark Woolworths case on collective redundancies which we reported on in our blog post of 3 June 2013. This decision confirms earlier statements
The EAT has now published its decision in the landmark Woolworths case on collective redundancies which we reported on in our blog post of 3 June 2013.
This decision confirms earlier statements that employers should take a purposive approach to interpreting UK legislation which sets out when an employer's duty to consult collectively about redundancies will apply. Previously the obligation to consult collectively was only triggered where an employer proposed to dismiss as redundant 20 or more employees at 'one establishment' within a period of 90 days or less. However, this decision confirms that the words "at one establishment" should be deleted when considering whether collective redundancy consultation should apply. This has implications for all employers who have multi-site operations, as individual sites will no longer be considered to be separate establishments. Employers will, therefore, need to look at the number of redundancies proposed across their whole organisation when considering whether collective consultation procedures should apply.
It will also raise a number of practical issues for employers, particularly those who operate across a number of smaller sites and for whom collective redundancy consultation requirements may not have arisen previously. Careful thought will need to be given to how to manage business decisions and when consultation procedures will be necessary. Employers may wish to consider setting up an employee representative body which can be utilised in redundancy consultations to act promptly and avoid any delay to the implementation of critical business decisions which may be caused by the need to elect representatives across a number of different sites as and when redundancy situations arise.
The employee representative body will need to meet various legal requirements and will also need to be set up in a way which will enable the employer the flexibility to utilise the body to manage business issues which impact its workforce on a national scale or at a localised level. We have recent experience in advising various clients on how to set up such employee representative bodies and manage the consultation process in order to meet the challenges faced by regional or multi-site businesses.
For more information on setting up employee representative bodies or how this decision may impact your business please contact Nick Thorpe or Sophie Westmacott.
This decision confirms earlier statements that employers should take a purposive approach to interpreting UK legislation which sets out when an employer's duty to consult collectively about redundancies will apply. Previously the obligation to consult collectively was only triggered where an employer proposed to dismiss as redundant 20 or more employees at 'one establishment' within a period of 90 days or less. However, this decision confirms that the words "at one establishment" should be deleted when considering whether collective redundancy consultation should apply. This has implications for all employers who have multi-site operations, as individual sites will no longer be considered to be separate establishments. Employers will, therefore, need to look at the number of redundancies proposed across their whole organisation when considering whether collective consultation procedures should apply.
It will also raise a number of practical issues for employers, particularly those who operate across a number of smaller sites and for whom collective redundancy consultation requirements may not have arisen previously. Careful thought will need to be given to how to manage business decisions and when consultation procedures will be necessary. Employers may wish to consider setting up an employee representative body which can be utilised in redundancy consultations to act promptly and avoid any delay to the implementation of critical business decisions which may be caused by the need to elect representatives across a number of different sites as and when redundancy situations arise.
The employee representative body will need to meet various legal requirements and will also need to be set up in a way which will enable the employer the flexibility to utilise the body to manage business issues which impact its workforce on a national scale or at a localised level. We have recent experience in advising various clients on how to set up such employee representative bodies and manage the consultation process in order to meet the challenges faced by regional or multi-site businesses.
For more information on setting up employee representative bodies or how this decision may impact your business please contact Nick Thorpe or Sophie Westmacott.