BrewDog, an independent brewer and bar chain, recently announced hundreds of redundancies across the UK after entering administration.
CEO James Tyler gave employees 25 minutes notice to join a Microsoft teams meeting in which he announced the £33 million acquisition of BrewDog by a US firm, Tilray.
During the 15-minute virtual meeting, Tyler announced almost 500 employees were being made redundant, with 38 sites closing immediately.
Employees were informed they would be given forms to apply for their pay through the Insolvency Service and the administrators, AlixPartners, also confirmed that equity holders would see no return from their deals. Employees have reported BrewDog’s failure to pay them for shifts worked in February, any overtime or any accrued holiday.
Unite the Union, representing many BrewDog employees, described BrewDog’s conduct as ‘the worst mass redundancy’ they had dealt with in over a decade, claiming even Tilray and the media were informed of the job losses before employees.
How should BrewDog have managed a redundancy process?
Redundancies should follow a fair process. BrewDog’s process has been described as ‘morally repugnant’.
Employers must consult employees before confirming redundancy. Furthermore, employers are required to hold collective consultations when 20 or more redundancies are planned within any 90-day period at a single establishment.
25 minutes notice to a Microsoft Teams call is not considered a consultation. Employers are legally required to begin a consultation process at least 45 days before the first dismissal takes effect where more than 100 employees will face redundancy.
A 15-minute call in which no clarification of the redundancy process or pay was given, leaving employees with vital questions unanswered, does not suffice.
Key Takeaways for Employers
- Redundancies should be handled with care, clarity and compassion, they are emotionally tough for employees. Employers should communicate early, be handled thoughtfully and with transparency. Employees should be offered genuine support and information, providing space for their questions to be answered.
- There is a reputational risk for Employers for poor handling of a redundancy process, as seen by BrewDog. Failure to fairly handle redundancy can create uncertainty for remaining employees and discourage potential recruits going forwards.
- Employers should look for alternative roles (if available), consider alternatives to redundancy wherever possible and remember that their duties with regards to collective consultation are in addition, not in place of, their obligations regarding individual consultation. Employers can receive a penalty for failure to consult on collective redundancies. This penalty is set to increase to 180 days’ pay per affected employee under changes in the Employment Rights Act 2025, which are due to take effect from 6 April 2026. It is essential Employers follow a fair process for both their employees and their business.
If you are an employer or employee affected by the above issue and want advice or support in connection with the same, or any employment law or HR issues more generally, please do not hesitate to contact us on 01206 239761.
