Archives: Redundancy

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Rewriting the law – UK collective redundancy consultation obligations change dramatically

Employers are required to collectively consult when proposing to dismiss 20 or more employees at one establishment as redundant within a period of 90 days or less (section 188 Trade Union and Labour Relations (Consolidation) Act 1992 (“TULRCA”).Defining what is meant by “at one establishment” for this purpose has always been tricky, and has led … Continue Reading

Changes to UK collective redundancy consultation rules come into force – ACAS publishes new guidance

On 6 April 2013, new consultation periods came into force for collective redundancies. As before, the law does not specify a minimum period of collective consultation. Collective consultation must however be ‘meaningful’ and, importantly, must start at least a specified number of days before the redundancy dismissals take effect.  … Continue Reading

Plans for new ‘owner-employee’ employment contracts announced

The Chancellor of the Exchequer, George Osborne, has announced plans to introduce a new type of employment contract – an ‘owner-employee’ employment contract. ‘Owner-employees’ will receive between £2,000 and £50,000 worth of shares (which will be exempt from capital gains tax) in exchange for giving up certain rights, including redundancy rights, the right to claim … Continue Reading

‘Costs plus’ approach to justifying discrimination in the UK endorsed by the Court of Appeal

The Court of Appeal in Woodcock v North Cumbria Primary Care Trust has ruled that the savings of costs alone will not, without more, amount to a legitimate aim so as to justify discrimination. In this case, Mr Woodcock was dismissed by reason of redundancy just before his 50th birthday in order to avoid his qualifying … Continue Reading

Expiry of fixed term contracts and UK collective redundancy consultation

  The Employment Appeal Tribunal (EAT) has provided guidance on when the expiry of a fixed term contract will count toward the number of dismissals proposed by an employer that triggers collective redundancy consultation obligations. The EAT held that employees who were dismissed by virtue of the expiry of their fixed term contracts were not … Continue Reading

Extensive new duty to provide agency worker information under TUPE and collective redundancy rules

Employers could face significant unanticipated penalties under TUPE and collective redundancy legislation as a result of the Agency Workers Regulations 2010 (AWR) which came into force on 1 October 2011. The AWR adds to the list of mandatory information to be provided to employee representatives under TUPE (the Transfer of Undertakings (Protection of Employment) Regulations … Continue Reading
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