Watch Out If You Are Making Redundancies

    View Authors July 2013
    As the duty to consult collectively may be triggered, even if you are making less than 20 employees redundant at any one location.

    A few weeks ago reports were circulating about a case in which the EAT had apparently said that the words “at one establishment” in s. 188(1) of the Trade Union and Labour Relations (Consolidation) Act 1992 should be disregarded when it comes to deciding whether the duty to carry out collective redundancy consultation applies. The EAT’s written judgment has now been published and we can confirm that the law governing collective redundancies has indeed changed. This decision represents a significant change to the law and it means that if your company is proposing to dismiss 20 or more employees as redundant within a period of 90 days or less, irrespective of where those employees are based, then you must ensure you comply with your collective consultation obligations under s.188 (i.e. 30 or 45 days), or run the risk of a protective award (90 days’ pay) being made against you.

    This decision represents a significant change to the law and it means that if your company is proposing to dismiss 20 or more employees as redundant within a period of 90 days or less, irrespective of where those employees are based, then you must ensure you comply with your collective consultation obligations under s.188 (i.e. 30 or 45 days), or run the risk of a protective award (90 days’ pay) being made against you.