In previous updates we have commented on the case of USA v Nolan, which was referred to the European Court of Justice (ECJ). We were hoping the ECJ would give a ruling on the ‘trigger point’ for consultation on collective redundancies, but it has declined to do so. This means that the position in the UK remains as stated in the case of UK Coal Mining Ltd v NUM.
Where an employer is proposing to close a workplace which will inevitably involve large-scale redundancies, it must consult with appropriate employee representatives before the decision to close the workplace is made and it must consult about the reason for the decision to close.
Note: Failure to consult properly may render the employer liable to pay up to 90 days' pay to each affected employee by way of compensation.
Other cases in the UK employment law update for November 2012:
> TUPE: Employees dismissed for refusing to accept post-transfer harmonisation of terms may claim re-instatement> TUPE: Reasonableness of covenant judged at date contract entered into