Olsten (UK) Holdings Limited v Adecco Group European Works Council

Olsten (UK) Holdings Limited v Adecco Group European Works Council

The CAC correctly interpreted 'transnational' to include collective redundancies in more than one EEA state, even if not sharing a common rationale or centrally coordinated. The obligation to convene an extraordinary meeting was triggered, and the failure to provide country-level sales data breached the EWC agreement and regulation 18A. The complaint regarding the Netherlands and Hungary was out of time as it was brought after the limitation period. Penalties were imposed for both breaches, reflecting their gravity and duration.

Parties
Appellant/respondent to Cross Appeal/respondent to Application: Olsten (UK) Holdings Limited; Respondent (cross Appellant)/applicant: Adecco Group European Works Council (by its employee representatives)
Jurisdiction
England and Wales
Judgment Date
13 December 2022
Procedural Posture
Employment Appeal / Judgment on Appeal and Cross Appeal From Central Arbitration Committee, With Original Jurisdiction Exercised for Penalty Application
Outcome
Appeal and cross-appeal dismissed; penalties imposed for breaches of EWC agreement and regulations.
Legal Topics
European Works Council, Transnational Information and Consultation, Collective Redundancies, Statutory Interpretation, Penalty for Breach of EWC Agreement
Employment Law Labour Relations European Union Law European Works Council Transnational Information and Consultation Collective Redundancies Statutory Interpretation Penalty for Breach of EWC Agreement

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Parties

Olsten (UK) Holdings Limited

Appellant/respondent to Cross Appeal/respondent to Application

Adecco Group European Works Council (by its employee representatives)

Respondent (cross Appellant)/applicant

Procedural Posture

Employment Appeal / Judgment on Appeal and Cross Appeal From Central Arbitration Committee, With Original Jurisdiction Exercised for Penalty Application

Legal Issues

  1. 1 Whether the Central Arbitration Committee misdirected itself on the meaning of a 'transnational' matter under the EWC agreement and relevant regulations
  2. 2 Whether the complaint regarding redundancies in the Netherlands and Hungary was out of time
  3. 3 What penalties should be imposed for breaches of the EWC agreement and regulations

Ratio Decidendi

The CAC correctly interpreted 'transnational' to include collective redundancies in more than one EEA state, even if not sharing a common rationale or centrally coordinated. The obligation to convene an extraordinary meeting was triggered, and the failure to provide country-level sales data breached the EWC agreement and regulation 18A. The complaint regarding the Netherlands and Hungary was out of time as it was brought after the limitation period. Penalties were imposed for both breaches, reflecting their gravity and duration.

Court Disposition

Appeal and cross-appeal dismissed; penalties imposed for breaches of EWC agreement and regulations.

Orders

  • Penalty of £20,000 for failure to convene extraordinary meeting regarding collective redundancies in Sweden and Germany
  • Penalty of £5,000 for failure to provide country-level sales data for November 2020 Annual Plenary Meeting