A recent ruling in the Court of Justice of the European Union defined “establishment” for collective consultations. This was particularly relevant in the administrations of Woolworths and Ethel Austin which had multi-site operations throughout the country.
The effect of this ruling is to bring to an end the dispute as to whether the protective awards are to be paid by the Department of Employment. It also addresses concerns from potential purchases of insolvent companies ensuring they do not inherit potentially significant liabilities as the concept of many “establishments” within an organisation is now recognised.
I have 30 years' experience in corporate business recovery and insolvency. After qualifying as a…
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