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Collective Agreements
The right not to be made redundant
In Kaur -v- M G Rover Group (2004) IRLR 278 the Rover Group entered into a Collective Agreement with Unions which stated:-
“There will be no compulsory redundancy….any necessary reductions in manpower will be achieved in future…..through natural wastage, voluntary severance and early retirement, after consultation with Trade Unions.”
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Practical Tip
Collective Agreements and/or policies and procedures contained in a Staff Handbook should not be entered into lightly. Clearly in this case the Rover Group entered into an agreement which severely limited their future options regarding redundancies. Particular care is needed to ensure that provisions do not become contractual terms inadvertently.
Legal advice should always be sought when drafting policies or agreements. A failure to do so may hinder the ability of a business to operate effectively in the future undermining employee relations and could result in unnecessary and avoidable Tribunal claims.
