Search

How can we help?

Icon

£40,000 in penalties for failure to inform and consult

The Employment Appeal Tribunal decision in Verizon European Works Council v Verizon Group highlights the risk of bypassing established statutory mechanisms for informing and consulting with the workforce. Where these arrangements are national works councils or European Works Councils (EWCs), this can lead to penalties of up to £75,000.

Under the arrangements in place at Verizon, the employer had to inform and consult with the EWC in advance of redundancy decisions being made. However, instead of doing this, on 21 December 2018 Verizon invited the EWC select committee to a meeting it described as confidential. At the meeting, the employer informed the EWC members them that it intended to make 216 redundancies in eight European countries (out of a total European workforce of 5,599) and that the redundancy process would start two weeks later.

Although the EWC select committee raised an internal complaint, the employer went ahead regardless. The parties attempted arbitration but the arbitrators did not come to any conclusions. The EWC made a complaint to the Central Arbitration Committee, which was upheld.

The EAT has now imposed a £35,000 penalty on Verizon for failure to inform and consult. It decided that:

  • The proposed reorganisation must have been in the employer’s mind well before 21 December 2018.
  • The employer had supplied the required information to the appropriate members of the EWC too late for a proper consultation before a final decision was made.
  • The employer had made a final decision without giving the EWC proper opportunity to have any meaningful input

Where these arrangements are national works councils or European Works Councils (EWCs), this can lead to penalties of up to £75,000.

The EAT also issued a £5,000 penalty for Verizon’s refusal to pay the reasonable expenses relating to the negotiations that were necessary to enable the EWC to carry out its functions appropriately.

In any proposed restructure or redundancy, it is always vital to be aware of obligations to inform and consult before the decision to go ahead has been taken. For advice on this and related matters, contact our specialist team.

Disclaimer
This information is for guidance purposes only and should not be regarded as a substitute for taking legal advice. Please refer to the full General Notices on our website.

Author profile

About this article

Read, listen and watch our latest insights

art
  • 30 September 2026

Clarkslegal celebrates strong results in the Legal 500 UK 2027

Clarkslegal would like to thank its clients for the outstanding feedback that contributed to the firm’s recognition in the Legal 500 UK Solicitors 2027 Guide. We are proud to be recognised across five key practice areas: Litigation, Property, Corporate & Commercial, Employment, and Immigration.

art
  • 29 September 2026
  • Employment

New bereavement leave rights for pregnancy loss

The Government have announced that in April 2027 they will be introducing a new right to bereavement leave to include those who suffer pregnancy loss before 24 weeks. This has been announced in their response to their consultation on bereavement leave “Make Work Pay: Leave for bereavement including pregnancy loss”.

art
  • 25 September 2026
  • Employment

Consultation response on duty to inform workers of right to join a union

The Employment Rights Act 2025, makes it a requirement for employers to inform workers of their right to join a trade union at the same time as the Section 1 particulars are issued to them and at subsequent times. The details of this new duty are to be provided in regulations.

art
  • 24 September 2026
  • Public Procurement

Procurement challenges: What documents and information are bidders entitled to?

A tricky feature of public procurement challenges for unsuccessful bidders is that contracting authorities usually hold all the cards. When the outcome of a tender conducted under the Procurement Act 2023 has been decided, authorities must provide bidders with an Assessment Summary containing their scores for each of the award criteria and those of the successful bidder and an explanation for those scores.

art
  • 23 September 2026
  • Corporate and M&A

GDPR Privacy Policies: Key requirements for organisations

When an organisation is creating a website or app to reach users or potential customers drafting a Privacy Policy may be an afterthought. However, failure to write a Privacy Policy, which complies with the relevant legislation, can have serious consequences.

Pub
  • 17 September 2026
  • Employment

Employment law changes in 2026: What you need to know

Stay ahead of the latest UK employment law changes. Watch our on demand webinar with Monica Atwal and Harry Berryman covering key HR developments and employment law updates for 2026.