Information and consultation
Twenty-eight years after its birth, TUPE still raises thorny questions. Its complexity is evidenced by the number of groundbreaking tribunal cases which have come to the fore recently, many of which could have far-reaching ramifications at a time of economic instability, writes Lesley Murphy.
In Haine and another v Day [2008] IRLR 642, the Court of Appeal held that a protective award made after the employer company went into liquidation in respect of its failure to consult before making collective redundancies was a provable, and therefore potentially recoverable, debt.
In Holis Metal Industries Ltd v GMB and another [2008] IRLR 187, the EAT refused to strike out a claim alleging breach of consultation duties arising pursuant to the TUPE Regulations 2006.
This article looks at some of the important judgments in the area of the transfer of undertakings over the past year.
In Hutchins v Permacell Finesse Ltd (in administration) EAT/0350/07, the EAT held that the starting point for determining a protective award is 90 days' pay, even where fewer than 100 redundancies are involved and the minimum consultation period is 30 days.
In UK Coal Mining Ltd v (1) National Union of Mineworkers (Northumberland Area) (2) The British Association of Colliery Management EAT/0397/06 & EAT/0141/07, the EAT held that the duty to consult about ways of "avoiding" redundancies inevitably involves consultation about the reasons behind the proposed dismissals and, contrary to previous authority, is not limited to consultation about how the redundancies are to be effected.
Where the Central Arbitration Committee has found an employer to be in breach of certain obligations under the Information and Consultation of Employees Regulations 2004, the EAT may order the employer to pay a financial penalty to the secretary of state. In the first case to arise on this point, Amicus v MacMillan Publishers Ltd EAT/0185/07, the EAT ordered the employer to pay £55,000 in respect of a "very grave" breach.
In Optare Group Ltd v Transport and General Workers Union EAT/0143/07 the Employment Appeal Tribunal held that a tribunal was right to hold that voluntary redundancies counted towards the total number of proposed redundancy dismissals at an establishment, which in this case was sufficient to trigger the statutory collective consultation requirements.
Judith Harris, professional support lawyer at Addleshaw Goddard, outlines the latest legal rulings.
HR and legal information and guidance relating to information and consultation.