The lack of information for and consultation with Verizon's European Works Council over an employment termination procedure has crystallized into a legal dispute both on the subject of employee non-involvement and on the obligation to cover the costs of an expert and of legal advice. The latest episode in the legal wrangle is the result of legal action by the European Works Council, which brought a case before the competent UK court (the Employment Appeal Tribunal- EAT) and sought to have the American telecom company ordered to pay a financial ‘penalty’ for failure to comply with its obligations. The European Works Council won its case in a judgment handed down on 01 October that has issued Verizon management a penalty notice of £35,000. UK legislation caps this penalty at £100,000) for failure to properly inform and consult with the EWC.
In transposing the European Works Council Directive, UK law provides for the possibility for the EWC to turn to the Employment Appeal Tribunal to have a company ordered to pay a penalty for a failure to comply with information and consultation rules as found by the Central Arbitration Committee (CAC). Verizon’s European Works Council made use of this right by bringing the management of the telecommunications group before the EAT to obtain this penalty order.
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