Redundancy - As Easy As 1, 2, 3?
30th July 2007
A recent decision has highlighted that an employer's obligation to consult with employee representatives regarding collective redundancies is triggered where the employer proposes to make 20 or more employees redundant in one establishment. It does not matter that some of the employees volunteer for redundancy, thus leaving 19 or fewer employees to be selected by the employer. What matters is that 20 or more redundancies were initially proposed.
In this case, the employer failed to fulfil the statutory requirements for collective consultation as they had disregarded those who volunteered for redundancy when calculating the number of employees they proposed to make redundant. They also failed to consult with the relevant trade union. Consequently, protective awards were made to the employees.
Protective awards for failure to inform and consult in a collective redundancy situation can be made separately and in addition to any award for unfair dismissal. The maximum award is 90 days' pay per employee and the statutory cap of £310 for a week's pay does not apply in these circumstances.
For more information, please contact:
Glasgow: Paul Brown or Michael McLaughlin
Edinburgh: Alan Strain
The information contained in this article is given for general information only and does not constitute legal advice on any specific matter.