The EAT has held that an obligation to collectively consult about proposed redundancies is triggered when an employer makes a provisional decision to close its workplace, even if the final decision is not made until later.
The implications of this ruling means that employers have a duty to collectively consult before a final decision has been made to make employees redundant. If the employer has provisionally decided to close or restructure the whole or part of its business, then they need to start a collective consultation process (even if alternatives are still being considered) where they are proposing to dismiss 20 or more employees.
It is therefore important for employers to be aware of any management discussions surrounding changes to the business, as if there are clear plans to close or restructure the business, as if certain targets are not met in the future then this can be enough to trigger the duty to collectively consult, even if the final decision has not been made.