Protective Awards Scope Extended to Individual Complainants: Glendinning v. Mivan

Protective Awards Scope Extended to Individual Complainants: Glendinning v. Mivan

Introduction

Glendinning v. Mivan (No 1) Ltd (In Administration) is a pivotal case adjudicated by the Industrial Tribunals of Northern Ireland on December 10, 2014. The claimant, William Glendinning, challenged the respondent, Mivan (No 1) Ltd, alleging breaches under Article 217 of the Employment Rights (Northern Ireland) Order 1996 (ERO). The core issue revolved around the respondent's failure to engage in collective consultation as mandated by Article 216 of the ERO in the context of redundancy-related dismissals commencing from January 1, 2014. This case is significant as it addresses the scope of protective awards when initiated by individual complainants rather than collective representatives like trade unions.

Summary of the Judgment

The Employment Judge, Buggy, held that the claimant's complaint was well-founded, determining that Mivan (No 1) Ltd failed to comply with the collective consultation obligations under Article 216 of the ERO. Consequently, a protective award was granted for a specific group of employees, termed the "specified employees," which included the claimant, other pending complainants, and all affected employees dismissed or proposed to be dismissed due to redundancy from January 14, 2014. The protective award mandated the respondent to pay remuneration for a protected period of 90 days, commencing from the earliest date of the relevant dismissals.

Analysis

Precedents Cited

The judgment extensively references the prior case of Dempsey & Others v David Patton & Sons (NI) Ltd (In Administration) [Case Reference No: 947/13 & Others, Decision issued on 4 April 2014]. In this instance, the Tribunal adopted and applied the legal principles established in Dempsey, particularly concerning the scope and nature of protective awards. Additionally, the judgment engages with European Union directives and case law, such as the Haine v Day [2008] IRLR 642 and Smith v Cherry Lewis Ltd (in receivership) [2005] IRLR 86, to contextualize and support the Tribunal’s decision.

Legal Reasoning

The Tribunal's legal reasoning centers on the interpretation and application of Articles 216 and 217 of the ERO, which mandate collective consultation in redundancy scenarios and provide mechanisms for addressing non-compliance, respectively. The Tribunal determined that Mivan (No 1) Ltd did not engage in the required collective consultation with any recognized trade union or employee forum, nor did it attempt alternative consultation methods prior to the dismissals.

The Tribunal engaged in comparative analysis with existing GB legislation and previous cases to ascertain the appropriate scope of protective awards. Emphasizing that Article 217 complaints should be treated akin to regulatory interventions, the Tribunal concluded that individual complainants should not be restricted from securing protective awards that extend beyond their personal circumstances, thereby aligning the scope of punitive measures with collective rights.

Impact

This judgment potentially broadens the avenues through which protective awards can be obtained, allowing individual employees to secure collective benefits in redundancy cases where no formal collective representatives exist. This decision may influence future tribunal proceedings by reinforcing the principle that protective awards should uniformly protect all affected employees, regardless of whether the complaint was initiated by a trade union, employee forum, or an individual. Consequently, employers may need to reassess their compliance strategies concerning collective consultation obligations to mitigate the risk of extensive financial liabilities arising from protective awards.

Complex Concepts Simplified

Protective Award

A protective award is a financial remedy awarded by a tribunal to employees who have been unfairly dismissed, particularly in redundancy situations where proper consultation procedures were not followed. This award aims to provide financial protection to employees, ensuring they receive remuneration for a specified period while they seek new employment.

Article 217 and 216 of the ERO

Article 216 requires employers to engage in collective consultation with employee representatives or trade unions before making redundancies. Article 217 outlines the procedure for employees to lodge complaints if they believe these consultation obligations have not been met.

Collective Consultation

Collective consultation refers to the process through which employers must discuss large-scale redundancies with employee representatives. This ensures that employees are informed, and their interests are considered before dismissals occur.

Conclusion

The Glendinning v. Mivan judgment marks a significant development in Northern Ireland's employment law, particularly regarding the enforcement of collective consultation obligations in redundancy cases. By extending the scope of protective awards to include individual complainants, the Tribunal has affirmed the importance of safeguarding employees' rights even in the absence of formal collective representation. This decision underscores the judiciary's commitment to ensuring fair treatment of employees and may lead to more rigorous compliance with consultation requirements by employers. Ultimately, this judgment enhances employee protections and clarifies the legal framework surrounding redundancy-related dismissals.

Case Details

Year: 2014
Court: Industrial Tribunals Northern Ireland

Judge(s)

JUSTICEJUSTICE COX) ALLOWED THE APPEALS AND WENT ON TO MAKE THE ORDERLORD BLACKBURN IN THE RIVER WEAR CASE IS APPOSITE AND THAT THIS STATUTE MUST BE

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