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

Debenhams Group in Burnley return - bringing 1,200 jobs Boohoocom Ph3 Burnley 3 1

Debenhams Group in Burnley return - bringing 1,200 jobs

23 Oct 2026

2

Business invited to take part in LCC budget consultation Budget Facebook V20263

Business invited to take part in LCC budget consultation

23 Oct 2026

3

Wastewater instruments manufacturer in Swedish buyout Pi Wtr Photo

Wastewater instruments manufacturer in Swedish buyout

23 Oct 2026

4

HMRC compliance is a business priority Mandylockett

HMRC compliance is a business priority

22 Oct 2026

5

Blackpool shortlisted for UK City of Culture 2029 A Collection Of The People Involved In Blackpools City Of Culture Bid Celebrate Shortlisting

Blackpool shortlisted for UK City of Culture 2029

22 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
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

Sub36 Reunion & Networking
03 Dec 2026

Sub36 Reunion & Networking

Burnley Football Club, BB10 4BX

15:00 - 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 PM+M Autumn Budget seminar - East Lancashire
Autumn Budget 2026 LBV 29 Oct 2026

The PM+M Autumn Budget seminar - East Lancashire

Blackburn Rovers Football Club (Premier Suite), Blackburn, BB2 4JF

08:00 - 10:30

Lancashire Finance Leaders Forum: The Autumn Budget in Focus
ian-UmTFcwHLPC0-unsplash.jpg.jpg 29 Oct 2026

Lancashire Finance Leaders Forum: The Autumn Budget in Focus

Farington Lodge Hotel, Stanifield Lane, PR25 4QR

08:00 - 10:00

Blackburn Budget Breakfast 2026
LBV Website Events GraphicBudget Breakfast 30 Oct 2026

Blackburn Budget Breakfast 2026

Premier Suite, Blackburn Rovers FC, Blackburn, BB2 4JF

07:30 - 10:30

Autumn Budget 2026
Lancaster And Morecambe Logo 1 30 Oct 2026

Autumn Budget 2026

Lancaster & Morecambe College, Lancaster, LA1 2TZ

08:00 - 10:00

Chamber Breakfast Networking – November
Lancaster And Morecambe Logo 1 03 Nov 2026

Chamber Breakfast Networking – November

Porsche Centre South Lakes, Carnforth, LA6 1FW

08:30 - 10:30

Funding Unlocked
IMG_3058.jpeg.jpg 04 Nov 2026

Funding Unlocked

Accrington Stanley FC, Accrington , BB5 5BX

10:00 - 12:30

Clubhouse Business Network sponsored by Orca Finance - November 2026
Club House Padel 05 Nov 2026

Clubhouse Business Network sponsored by Orca Finance - November 2026

Clubhouse, Blackburn, BB1 3NT

14:00 - 16:00

Napthens' Cumbria Clay Shoot - for Penny Conservation Charity
N123_1200x400px_Title&Subtitle (1).png.png 12 Nov 2026

Napthens' Cumbria Clay Shoot - for Penny Conservation Charity

Leighton Hall Estate Storrs Lane, Carnforth, LA5 9ST

09:00 - 16:00

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