The ECJ has handed down its decision in the Woolworths and Ethel Austin cases as to the meaning of establishment in collective redundancy cases. You may recall in this case Woolworths counted each store as a separate establishment meaning for the smaller stores with a headcount of fewer than 20 it did not collectively consult when the stores were closed.
The ECJ has held that an establishment within the meaning of the legislation was the individual’s workplace not the employer as a whole. Employers need to look at the entity to which the employees are assigned to carry out their duties. The decision has been referred back to the Court of Appeal who are now expected to reverse the groundbreaking decision of the EAT in the mid 2013 which said the opposite and caused much controversy in the employment law world.
If you have an employment law matter that you would like to discuss, please do not hesitate to contact Astons Solicitors on 01604 700099.
Written by
Edward Aston
4th June 2015