Each Woolworth's Store Is An 'Establishment'

A tribunal has considered the collective redundancy consultation requirements in relation to over 27,000 employees of Woolworths, which went into administration in 2008.

It held that Woolworths had substantially failed to comply with its duty to consult employee representatives, and made a protective award of 60 days' gross pay to each affected employee. However, it also had to decide which employees were entitled to receive that compensation. Collective consultation must take place where an employer proposes to dismiss as redundant 20 or more employees 'at one establishment' within a period of 90 days or less. Therefore staff working in Woolworths stores with fewer than 20 employees would not receive the protective award unless Woolworths could be regarded as one national retail establishment.