Consultation warning after Woolworths decision

By Napthens

19 Jun 2013

Website

A Lancashire employment law expert has warned that businesses looking to make even a small number of staff redundant must ensure they consult properly or face large payouts.

The warning comes after a landmark legal decision relating to former employees of Woolworths and Ethel Austin.

Last year a number of former employees were awarded a £70m pay-out after the administrators of the collapsed businesses failed to consult with staff correctly. However, only staff who worked at stores with 20 or more workers were entitled to the compensation.

The law says that there is only an obligation to consult when 20 or more staff are to be made redundant at one establishment.

The decision was appealed on the grounds that ‘establishment’ should mean the company as a whole rather than individual stores.

The appeal has now been upheld by the Employment Appeal Tribunal, meaning employees from Woolworths being entitled to up to eight weeks’ pay, and those at Ethel Austin 12 weeks’ pay.

Now Oliver McCann, partner in the employment team at Napthens solicitors in Blackburn, said: “This ruling means that if an employer intends to make 20 or more staff redundant, wherever they may be based in the UK, they must consider consultation properly or face paying out considerable compensation claims. “Consultations are a time-consuming and potentially costly process, and must be done properly. Any employers finding themselves in this situation should consult their advisors at the earliest opportunity.”

Enjoyed this? Read more from Napthens

Latest news

1

Coastal businesses to benefit from seawall improvements Promenadegardensaerial

Coastal businesses to benefit from seawall improvements

23 Sep 2026

2

£2.5m funding boost for Eden Project Morecambe eden-project-north.jpg

£2.5m funding boost for Eden Project Morecambe

23 Sep 2026

3

Warden Construction to repair historic library roof Wardenlancaster Libraryexternal Resized

Warden Construction to repair historic library roof

23 Sep 2026

4

Student lettings agency acquires 1,235 bedrooms in Lancaster Dsc00917

Student lettings agency acquires 1,235 bedrooms in Lancaster

22 Sep 2026

5

Permission granted for 159 home development in Hutton Mcdermott Hutton

Permission granted for 159 home development in Hutton

22 Sep 2026

Background image for hub sign up block

LBV Hub

Leverage Lancashire Business View platforms

Post your news
Post your events
Post your offers
Build your network
Improve your SEO
Gain coverage in the magazine
Sign-up
Events
Built Environment Conference 2026
BEC26 WW Logo720 24 Sep 2026

Built Environment Conference 2026

EG On The Move, Waterside Head Office, Blackburn, BB1 2FA

08:30 - 13:00

All In One Network
LBV Website Events GraphicAll In One Network 15 Oct 2026

All In One Network

The Leisure Box, Northlight, Glen Way, Brierfield , BB9 5NH

14:00 - 16:00

Sub36 Awards 2026
Sub36 WW Logo720 16 Oct 2026

Sub36 Awards 2026

Park Hall Hotel & Spa, Chorley, PR7 5LP

18:30 - 00:30

LBV131 November/December Magazine Networking Event
LBV131 Magazine Launch Social720No Text 19 Nov 2026

LBV131 November/December Magazine Networking Event

Lancashire

08:30 - 10:30

Lancashire Business Day 2026
LBD26 WW Logo720 27 Nov 2026

Lancashire Business Day 2026

Burnley Football Club, BB10 4BX

12:00 - 17:00

September Freelancer Meet-Up
 Freelancer Meet-Up Square September .png.png 24 Sep 2026 - 24 Sep 2026

September Freelancer Meet-Up

Society1, Coworking Space, Preston, PR1 3LT

10:00 - 12:00

Employment Law Update Lancashire
LBV Website Events GraphicEmployment Law 1 24 Sep 2026

Employment Law Update Lancashire

Crow Wood Hotel & Spa Resort, Burnley, BB12 0RT

09:00 - 12:00

The Business Network Central and East Lancashire
LBV Website Events GraphicBusiness Network 2 24 Sep 2026

The Business Network Central and East Lancashire

Mytton Fold, Langho, BB6 8AB

11:30 - 14:15

Help to Grow: Management Course
Help To Grow 25 Sep 2026 - 15 Dec 2026

Help to Grow: Management Course

University of Lancashire, Preston, PR1 2HE

09:30 - 12:00

90 Day Business Planning Workshop
90 Day Business Planning Workshop 25 Sep 2026

90 Day Business Planning Workshop

The Holiday Inn, Bolton, BL1 2EW

09:00 - 16:30

Employment law webinar - an update on key ERA 2025 changes
LBV Website Events GraphicEmployment Law Webinar 29 Sep 2026

Employment law webinar - an update on key ERA 2025 changes

Online, Preston, PR1 3JD

12:00 - 13:00

Preston Tech Connection Coworking Day at Society1
Preston Tech 2 29 Sep 2026

Preston Tech Connection Coworking Day at Society1

Society1, Coworking Space, Preston, PR1 3LT

09:00 - 17:00

Advertise with us

Reaching 50,000 members, our print, digital and event platforms offer a fantastic way to raise your business profile and help you grow.

Find out more LBV129 Online Graphic
Subscribe now

Weekly news bulletin