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Redundancy consultation: Definition of "establishment" under Collective Redundancies Directive

This report relates to 1 case(s)

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    Rockfon A/S v Specialarbejderforbunet i Danmark, acting for Nielsen and others [1996] IRLR 168 ECJ (0 other reports)

An "establishment" for the purposes of the EC Collective Redundancies Directive means the unit to which the workers made redundant are assigned to carry out their duties, rules the ECJ in Rockfon A/S v Specialarbejderforbundet i Danmark [1996] IRLR 168. It is not essential for that unit to be endowed with a management which can independently effect collective redundancies. Thus, in determining the application of the Directive, it is the number of employees assigned to the individual unit which is crucial, not the aggregate number of employees employed by several associated companies within a corporate group which share joint personnel functions responsible for recruitment and dismissal decisions.