Employment Appeal Tribunal clarifies collective redundancy consultation rules

When an employer is making large scale redundancies it needs to calculate how many redundancies might be made at each “establishment”. For workforces with different sites or with large numbers of mobile workers this can raise difficult issues. In this case the EAT considered whether an educational authority needed to aggregate all its schools and treat them as one “establishment” or whether each school was a separate “establishment” . This could have major practical implications about whether or not collective consultation is required. The EAT decided that the term “establishment” in the Trade Union and Labour Relations (Consolidation) Act 1992 relates to a physical presence, and is largely directed at the place of work to which the employees are assigned. The EAT said the view that an individual school could not be a “distinct entity” for collective consultation purposes flew in the face of reason and was perverse. The particular issue now needs to be decided by a different Tribunal, but it is pointing towards a decision that each school is a separate “establishment”. (Renfrewshire Council v Educational Institute of Scotland)