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E Green and Sons (Castings) Ltd v ASTMS

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Court
  
High Court

Location
  
United Kingdom

Citation(s)
  
[1984] IRLR 135 (EAT)

E Green & Sons (Castings) Ltd v ASTMS [1984] IRLR 135 (EAT) is a UK labour law case, concerning the information and consultation in the European Union.

Contents

Facts

Three subsidiary companies of the ‘Green Economisers Group plc’ operated from the same premises. EG&S (Castings) Ltd sacked 97 employees. Green & Son sacked 36 employees. EG&S (Site Services) Ltd sacked 24 employees. All this happened without consultation. They all shared accounting services, and the personnel director of the holding company was responsible for all the subsidiaries. The managing director was responsible for the decision to make redundancies in each. The workers claimed that more than 100 people were dismissed by the same employer at one establishment, to get longer consultation. Tribunal held that the employees were dismissed from the same ‘establishment’ within the meaning of EPA 1975 s 99. The companies applied for review on the ground that all employees signed separate contracts with the companies, which were different ‘employers’, under the Act.

Judgment

Nolan J held that the corporate veil cannot be lifted. This was three separate employers. One establishment does not mean one premises and business. Employment is between the subsidiary and the employee, because the relationship is determined by the contract of employment. No further inquiry is necessary.

References

E Green & Sons (Castings) Ltd v ASTMS Wikipedia


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