Unite Breaks New Ground on ICE Regs

MacMillan Publishers Limited has been fined £55,000 (73% of the maximum award possible) by the Employment Appeals Tribunal (EAT) following an action brought by Unite (Amicus Section) after Macmillan had failed to inform or consult with its employees under the Information and Consultation of Employee Regulations 2004.

The case was the first of its kind taken under the regulations and was pursued by the union as a result of the company’s persistent failure to arrange a ballot to elect employee representatives following a valid request and an order by the CAC. The EAT found that it was ‘a very grave breach affecting many employees’ and fixed a penalty of £55,000 against MacMillan Publishers Limited under regulation 22.

In its Judgment the EAT stated, “Employers must recognise that these are important rights conferred on workers. The provisions must be complied with. We think it appropriate, in fixing this penalty, to stipulate a sum which, within the limits imposed by the legislation, will deter others from adopting what can only be described as the wholly cavalier attitude to their obligations that has been demonstrated by this company.”

Rowley Ashworth Solicitors, who were instructed by Unite (Amicus Section) to pursue the action against MacMillan Publishers, said, “We are pleased to have secured this ground breaking Judgment on behalf of the union. We agree with the EAT’s view that it is imperative that employers comply with their legal obligation to inform and consult with employees and understand that the penalties for failing to do so can be severe.”

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Press enquiries: Stephanie Lennon, Rowley Ashworth Solicitors Direct Dial 0121 212 6812

Editors Notes

1. Information and Consultation of Employee Regulations 2004 (ICE). The Regulations are intended to give effect to European Directive 2002/13/EC, which established a general framework for informing and consulting employees. They impose obligations on larger employers to put in place arrangements to ensure that employees are informed and consulted on a wide range of issues. The Regulations currently apply to undertakings with at least 150 employees: Regulation 3 and Schedule 1. If there is a valid request by at least 10% of the employees, an employer covered by the Regulations is obliged to initiate a negotiating process to establish information and consultation arrangements: Regulation 7. Once the request is made the employer must undertake negotiations to seek to reach an agreement on information and consultation arrangements: Regulation 14. The Regulations provide for how the employer is to conduct the negotiations to establish such an agreement and the conditions such an agreement must meet: Regulations 14-16. If agreement is not reached within a prescribed period following a valid employee request, the standard information and consultations provisions apply; they require the employer to inform and consult within a statutory regime: Regulation 18-20.

2. Fine of up to £75,000. In respect of the main consultation duties – failures to consult in accordance with a negotiated agreement or the standard provisions – a CAC declaration may be followed by a separate application to the EAT for a penalty notice: Regulation 22. The EAT can impose a penalty of up to £75,000: Regulation 23.

3. Rowley Ashworth Solicitors specialise in employment law and personal injury claims for trades unions and their members. The firm has eight offices nationwide working on behalf of Unite (Amicus Section), Unite (TGWU Section), GMB South and USDAW.

4. Rowley Ashworth Solicitors is regulated by the Solicitors Regulation Authority.