AEI Cables Ltd v GMB & Ors (Redundancy : Protective award) [2013] UKEAT 0375_12_0504 (05 April 2013)

AEI Cables Ltd v GMB & Ors (Redundancy : Protective award) [2013] UKEAT 0375_12_0504 (05 April 2013)

It is unreasonable to expect an employer to trade while insolvent to enable it to provide information and consult in accordance with its obligations under s.188 TULRCA. The Employment Tribunal erred in awarding a 90-day protective award without sufficient regard to the employer's insolvency; a 60-day award is just...

Source-derived case information.

Citation
[2013] UKEAT 0375_12_0504
Parties
Appellant: Respondent (Employer); First and Second Respondents: R Fresia & Mr W Frost; Respondents: Other Respondents
Jurisdiction
United Kingdom
Judgment Date
05 April 2013
Procedural Posture
Employment Appeal Tribunal / Appeal From Employment Tribunal Decision
Outcome
Appeal allowed in part; protective award reduced.
Legal Topics
Redundancy, Protective Award, Consultation Obligations, Insolvency, Trade Union Rights
Employment Law Insolvency Law Redundancy Protective Award Consultation Obligations Insolvency Trade Union Rights

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Parties

Respondent (Employer)

Appellant

R Fresia & Mr W Frost

First and Second Respondents

Other Respondents

Respondents

Procedural Posture

Employment Appeal Tribunal / Appeal From Employment Tribunal Decision

Legal Issues

  1. 1 Whether the Employment Tribunal erred in awarding a 90-day protective award under s.189 TULRCA despite the employer's insolvency and inability to lawfully trade for the consultation period.

Ratio Decidendi

It is unreasonable to expect an employer to trade while insolvent to enable it to provide information and consult in accordance with its obligations under s.188 TULRCA. The Employment Tribunal erred in awarding a 90-day protective award without sufficient regard to the employer's insolvency; a 60-day award is just and equitable in the circumstances.

Court Disposition

Appeal allowed in part; protective award reduced.

Orders

  • Protective award reduced from 90 days to 60 days.