Consultation over changes to terms and conditions
[ch 11: page 394]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 at the start of this Chapter. In GMB v Man Truck and Bus UK [2000] IRLR 636, the EAT confirmed that 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.
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 contract change is for a reason unrelated to the individual worker. The ECJ said that the definition of “redundancy” under the Directive must not be interpreted narrowly.