Workplace Report September 2004

Law - Redundancy

Duty to consult

Case 2: The facts

Pilkington UK, the glassmakers, needed to make redundancies. Workers were encouraged to apply for temporary vacancies at its associated company in Spain.

They were told that there was no guarantee of work in the UK at the end of their time in Spain, but that if there was work they would have a chance to be considered for it.

In the event, they did not get jobs in the UK when they returned from Spain.

The ruling

The EAT held that the principles of consultation and the requirement to look for suitable alternative vacancies apply to both voluntary and compulsory redundancies. Pilkington had failed to consider the employees for alternative work when they returned from Spain, and this was a breach of its contractual obligation.

However, as there were no other suitable alternatives, consultation would not have made a difference, so the EAT found that the dismissals were not unfair.

Kilgallon and others v Pilkington UKEAT/0771/03