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17-03-2014

How do you assess the amount of compensation that should be paid where there has been a failure to inform and consult on group redundancies?

 

Where an employer intends to dismiss as redundant 20 or more employees, there is an obligation to inform and consult with employee representatives. Failure to do so entitles each affected employee to up to 90 days gross pay.

In London Borough of Barnet v Unison, there had been some consultation, but there had been a failure to consult in relation to agency employees.

An earlier case had said that where there was a total failure to consult, the starting point should be the maximum award and then mitigating factors should be considered. In this case, the EAT said that did not mean that the maximum award was the starting point where some consultation had taken place.

In this case, there was also a TUPE transfer. Under TUPE, liabilities transfer to the new employer and so the new employer was held joint and severally liable for the awards of compensation.emp

Sarah Rushton (srushton@moonbeever.com

This is intended for general information only and should not be considered as giving advice in relation to any individual case nor be taken as applying to any particular case. No liability is accepted for any such use of the information.

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