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What Can Employers Learn from the Collapse of Monarch?

on Friday, 13 October 2017.

The Unite union is launching legal action on behalf of more than 1,800 staff who were made redundant as a result of the collapse of the airline company, Monarch.

Following the announcement that Monarch has been put into administration, Unite has said that it will assist former Monarch workers by "launching legal action to secure the compensation they are owed". The basis for the legal claim is Unite's assertion that Monarch failed to follow correct redundancy procedures and, in particular, that the company failed to consult with its staff prior to going into administration.

If successful, compensation is likely to amount to several million pounds and would be met by the government rather than the airline.

Best Practice

Where redundancies are likely there are some key points which employers should be aware of. Of crucial importance in relation to Monarch is the requirement to consult with employees.

In particular, employers should note the following with regards to consultation:

  • Timing - consultation should begin in good time and there will be particular time periods for consultation which are dependent on the scale of the proposed redundancy. For employers with 100 or more employees, as in the case of Monarch, consultation should take place at least 45 days prior to the dismissal.

  • Content - representatives should be provided with written information outlining details of the proposed redundancies. This should include, amongst others, the reason for the proposed dismissals, the numbers and descriptions of employees who are proposed to be dismissed and the proposed method of selecting employees to be dismissed.

  • Avoiding dismissals - employers should ensure that they consult on ways to avoid or reduce the number of dismissals.


For more information, please contact Allison Cook in our Employment Law team on 0117 314 5466. 

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