“Establishment” and collective redundancies – a step closer to clarity?

As economy recovery continues to falter, collective redundancies, and disputes in relation to redundancies, are on the rise again. One issue on which we frequently advise is the meaning of the term “establishment” for the purposes of collective information and consultation. As you may recall, the collective redundancies duty to inform and consult is only triggered once an employer is proposing to dismiss as redundant 20 or more employees at one establishment within a period of 90 days or less.

Many employers operate from more than one location. Many organisations are divided into smaller divisions and units. It is common for the sites/units to have a level of autonomy, as well as operational, technical, financial and/or administrative interdependence. In such instances, it is critical, but can be difficult, to identify the correct “establishment” to ensure compliance with collective redundancies obligations…

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