Consultation over changes to terms and conditions
[ch 11: page 414]The duty to consult collectively over redundancies is triggered by any “dismissal for a reason not related to the individual concerned” (section 195, TULRCA). This is much wider than the definition used to claim unfair redundancy dismissal and a redundancy payment, set out on page 400.
The dismissal of employees and their re-engagement on new terms and conditions triggers collective redundancy consultation obligations even if there is no proposed reduction in the number of employees (GMB v Man Truck and Bus UK [2000] IRLR 636).
In Pujante Rivera v Gestora Clubs Dir [2016] IRLR 51, the ECJ ruled that a resignation in response to a significant unilateral cut to contract terms and conditions (that is, a constructive dismissal) will count towards the 20-employee threshold, as long as the reason for the contract change is unrelated to the individual worker. The ECJ said that the definition of “redundancy” under the Directive must not be interpreted narrowly.