The definition of an undertaking which must consult under ICER 2004 (Acas v PCSU)

Table of contents

• What are the practical implications of this judgment?
• What is the relevant background?
• Background law
• Background facts
• The decision of the Central Arbitration Committee
• What did the EAT decide?
• Case details

Article summary

Employment analysis: For the purposes of the Information and Consultation of Employees Regulations 2004 (ICER 2004), an undertaking is an entity which carries out economic activity (whether or not for gain). In that context, the term ‘economic activity’ covers any activity consisting in offering goods or services for which it is remunerated but excludes activities which fall within the exercise of public powers. It is not necessary for all activities to amount to ‘economic activity’. It is sufficient to establish that the relevant legal entity carries out an economic activity which is not merely ancillary or de minimis. In providing its charged-for services Acas carries out such economic activity and is therefore an undertaking which is subject to the obligations to inform and consult its employees under ICER 2004, according to the EAT.