Employers Eagerly Await ECJ Decision on Collective Redundancies

The rules relating to collective redundancies in the UK are to be clarified by the European Court of Justice (ECJ).

The “Woolworths” case, pending decision from the ECJ after it was referred by the Court of Appeal, has meant that collective redundancies are not required to be “at one establishment” to force the employer to consult, however employers will be eagerly anticipating the ruling of the ECJ in the matter.

As the law stands, if an employer proposes more than 20 redundancies in 90 days across their business, they must consult and the actual number of redundancies (over and above 20) at any one establishment is irrelevant.

Prior to the Woolworths decision, UK law had permitted employers to treat different branches or divisions as separate establishments, meaning that in reality far more than 20 redundancies could have happened, yet employers could avoid their responsibility to collectively consult employees on their plans.

The change in the law came after the EAT ruled that the term “at one establishment” in s. 188(1) of the Trade Union and Labour Relations (Consolidation) Act 1992 should be ignored, in order to be compatible with the EU Collective Redundancies Directive (No.98/59).

Breaches of collective consultation obligations can turn into one of the most costly mistakes employers can make, so employers will have to keep track of the number of redundancies throughout their business to avoid potential claims for failure to consult.

Furthermore, another important note for employers to bear in mind in order to avoid falling short of their responsibilities is that during the redundancy process, those who take voluntary redundancy must be included in the overall number.

It is expected that the ECJ will hear the Woolworths case alongside the linked case of Lytle and others v Bluebird UK Bidco 2 Ltd later this year.

Redundancy Advice Lawyers in Glasgow

Whether you are an employer or employee looking to speak to one of our Glasgow based solicitors about collective redundancies, Employment Law Glasgow can help. To get in touch, please call 0141 811 0224. Alternatively, please complete our online enquiry form.