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

Ultimate Visual Solutions expands technical team Ac Press Release 2

Ultimate Visual Solutions expands technical team

12 Oct 2026

2

Farleys appoints Chris Bowers as partner and head of insolvency Chris Bowers

Farleys appoints Chris Bowers as partner and head of insolvency

12 Oct 2026

3

Work starts on new M&S in Colne Barnfield Ms

Work starts on new M&S in Colne

12 Oct 2026

4

Venue confirmed for issue 131 launch event 130 Launch

Venue confirmed for issue 131 launch event

12 Oct 2026

5

Lancashire Supplier Charter is opening the door to business Vik Dhillon

Lancashire Supplier Charter is opening the door to business

12 Oct 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
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

The Landmark, School Lane, Burnley, BB11 1UF

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

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

The Business Network Central and East Lancashire
LBV Website Events GraphicBusiness Network 2 15 Oct 2026 - 15 Oct 2026

The Business Network Central and East Lancashire

Mytton Fold, Langho, BB6 8AB

11:30 - 14:15

Seriun Cyber Security Conference
Seriun 15 Oct 2026

Seriun Cyber Security Conference

Turf Moor, Burnley, BB10 4BX.

09:00 - 13:30

Preston Tech Connection Coworking Day
PTC Coworking Day long banner Oct.png.png 15 Oct 2026

Preston Tech Connection Coworking Day

Society1, 9-10 Cross Street, Preston, PR1 3LT

09:00 - 17:00

Blackburn Darwen Youth Zone Annual Quiz
BDYZ Quiz 15 Oct 2026

Blackburn Darwen Youth Zone Annual Quiz

Accrington Stanley FC, Accrington, BB5 5BX

17:00 - 13:46

Chamber Business Lunch with Leanne Lucas, Founder of Let’s Be Blunt CIC
Lancaster And Morecambe Logo 1 16 Oct 2026

Chamber Business Lunch with Leanne Lucas, Founder of Let’s Be Blunt CIC

Lancaster Golf Club, Lancaster, LA2 0AJ

11:00 - 14:00

Building Brands (and workplaces) That Are Accessible For Everyone
Wyqfi3-wowjag-heczop.jpg.jpg 16 Oct 2026

Building Brands (and workplaces) That Are Accessible For Everyone

Neuro Spark Training Solutions, Burnley , BB11 2AS

09:30 - 16:00

St Catherine's Skydive, October
Skydive 17 Oct 2026

St Catherine's Skydive, October

Black Knight Parachute Centre, Lancaster, LA2 0DY

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 LBV130 Online GraphicWebsite
Subscribe now

Weekly news bulletin