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What is an Establishment and does it matter?
The recent Employment Appeal Tribunal (EAT) ruling on what constitutes "one establishment" when making 20 or more redundancies has made a huge difference to the way employers need to review any restructuring plans and the consultation requirements.

Two cases in particular brought following the closure of Woolworths and Ethel Austin produced rulings that have replaced employers’ previous understandings about the way they count the numbers of potential redundancies. This has a major impact on the way in which they conduct the consultation exercise and the need to elect employee representatives as part of the process. This means that an employer has to assess not only the number of employees affected at one particular site, but the number of employees affected at all the employer’s sites over a 90 day period. If this is 20 or more then the employer has to abide by the collective redundancy consultation requirements or potentially face a tribunal award of up to 90 days’ pay for each employee affected.
Posted on 19 Nov 2016


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