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A selection of the latest European HR news from the Federation of European Employers (FedEE).ECJ: When should redundancy consultation commence?
The European Court of Justice (ECJ) has published its decision in a case concerning the timing of collective redundancy consultations.
The Finnish Supreme Court sought clarification from the ECJ about the correct interpretation of the EU Collective Redundancy Directive (98/59/EC). The directive states that "where an employer is contemplating collective redundancies, he shall begin consultations with the workers representatives in good time with a view to reaching an agreement" (Art 2.1). However the Finnish Court were uncertain as to whether this consultation should occur when the employer started considering collective redundancies, or whether it should occur once the employer had prepared all the necessary documents that the employee representatives would need in order to be able to negotiate.
According to the ECJ the consultation period should occur as soon as there is the prospect "of strategic decisions or of changes in activities which compel the employer to contemplate or to plan for collective redundancies". Furthermore, in group companies "it is always for the subsidiary, as the employer, to undertake consultations with the representatives of the workers who may be affected by the collective redundancies contemplated and, if necessary, itself to bear the consequences of failure to fulfil the obligation to hold consultations if it has not been immediately and properly informed of a decision by its parent company making such redundancies necessary."
In other words, under the collective redundancies directive, the immediate employer is required to begin consultation from the outset and provide necessary information to representatives as and when it becomes available. (Akavan Erityisalojen Keskusliitto AEK ry and ors v Fujitsu Siemens Computers Oy. Case: 44/08.)
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