Workplace Report October 2005

Law - Redundancy

Special circumstances

Case 6: The facts

After losing its main contract, an employer told its staff that they were to be made redundant without consultation. It argued that the loss of the contract was a "special circumstance" that relieved it of the duty to consult.

The ruling

The Employment Appeal Tribunal held that the "special circumstances" exception applies only where a sudden disaster makes it unfeasible for the employer to comply with the obligation to consult. In this case, the company had taken a calculated and entirely commercial decision to make redundancies at the earliest opportunity without consultation and without considering alternatives.

Industrial Chemicals v Reeks and others UKEAT/0076/04