Court of Appeal decides that the collective redundancy provisions in TULRCA covered the closure of a US military base in UK
The obligation to consult about collective redundancies under section 188 of the Trade Union and Labour Relations (Consolidation) Act 1992 (TULRCA) may apply even where they come about due to the strategic decisions of foreign governments, the Court of Appeal has held in USA v Nolan (No 2). The Court of Appeal rejected the US’s argument that there was an implied exemption to the consultation requirements in relation to the actions of a foreign sovereign state engaged in the exercise of public powers. A further hearing will be listed to consider the vexed question of whether the obligation to consult collectively about proposed redundancies involves engaging with the reasons for the dismissals (i.e. the strategic decision to close the base) or whether it only arises once the strategic/commercial decision has been taken (USA v Nolan (No.2)).
Following the decision of the US government to close a US Army base in Hythe, Hampshire, around 200 employees were given notice of dismissal, due to redundancy. Ms Nolan, an employee at the army base, brought a claim for a protective award under section 189 of TULRCA on the basis that there had been no consultation over the US government’s operational decision to close the base (as opposed to consulting over the consequential redundancies only, once the decision to close had been taken).
It would have been open to the US government to rely on the principle of state immunity and refuse to submit to the jurisdiction of the English tribunal system. However, it failed to raise the question of state immunity until after the liability hearing, by which time it had already submitted to the jurisdiction…
Click on the link below to read the rest of the Addleshaw Goddard briefing.
Sign in or Register to continue reading this article
It's quick, easy and free!
It takes just 5 minutes to register. Answer a few simple questions and once completed you’ll have instant access.Register now
Why register to The Lawyer
In-depth, expert analysis into the stories behind the headlines from our leading team of journalists.
Identify the major players and business opportunities within a particular region through our series of free, special reports.
Receive your pick of The Lawyer's daily and weekly email newsletters, tailored by practice area, region and job function.
More relevant to you
To continue providing the best analysis, insight and news across the legal market we are collecting some information about who you are, what you do and where you work to improve The Lawyer and make it more relevant to you.
News from Addleshaw Goddard
News from The Lawyer
Briefings from Addleshaw Goddard
InCredit — new controller form for intragroup transactions; PPI complaints set to continue; and more
Addleshaw Goddard’s weekly publication provides information on current retail finance issues, regulatory and legislative developments, market watch and ASA adjudications.
Data Issues Roundup — firm warned to stop nuisance text messages; EU ruling on CCTV; ICO's privacy seals; and more
Addleshaw Goddard has released the 19 January 2014 issue of its Data Issues Roundup .
Analysis from The Lawyer
Which firms are cutting it in this era of slimline rosters, and who are the GC new brooms making clean sweeps? The Lawyer can reveal all
Could Slater & Gordon achieve its stated aim of becoming a top consumer brand by acquiring Pannone?