Employment lawyers have widely hailed a legal decision over redundancies at the former Woolworth retailer as a landmark ruling. In the case of the shopworkers’ union, USDAW v. WW Realisation 1 Ltd (in liquidation), the judges decided that businesses have to launch a consultation procedures for collective redundancies as soon as 20 people or more are concerned, even if they work on different sites. Indeed, UK law provides that employers are only obliged to consult collectively where they propose to dismiss as redundant 20 or more employees at one ‘establishment.’ Saying that this provision goes against the European directive on collective redundancies, the judges have decided that a dismissal is considered as collective as soon as at least 20 people are concerned in the same company over a given timeframe. (Ref. 130391)
Under European collective redundancies directive, employers contemplating collective redundancies within a specified period are required to consult with workers’ representatives ‘in good time’ and ‘with a view to reaching an agreement’. However, under the Trade Union and Labour Relations (Consolidation) Act 1992, employers are only obliged to consult collectively where they propose to dismiss as redundant 20 or more employees at one ‘establishment’ within a period of 90 days or less.
The effect
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