The Government has proposed shortening the 90 day consultation period for collective redundancies of 100 or more employees at one establishment to either 30 or 45 days. It argues that the current minimum consultation periods are not required by the relevant European Union Directive; that developments in information technology have made consultation easier and faster to carry out; and that giving special treatment to cases involving more than 100 redundancies looks increasingly arbitrary when there is no evidence that 100 redundancies is a trigger for higher impact or greater cost, socially or economically. In the Government’s view, a shorter consultation period will also reduce uncertainty for employees.
Paul Burton, Employment Solicitor, says “To support the changes, the Government intends to publish a new non-statutory code of practice. The code will, among other things provide guidance on what is meant by the term ‘establishment’ for the purpose of collective redundancies and on the treatment of fixed-term contracts.”
It will also cover:
- When consultation should start;
- Who the consultation should cover;
- What should be discussed, including whether this extends to the business decision behind the redundancies and the information that should be provided to employees’ representatives;
- How the consultation should be conducted; and
- When consultation can be considered complete.
The consultation closes on 19 September 2012 and if it supports change to the current rules the Government will seek to introduce these changes in Spring 2013.
For a free initial meeting please call 01202 499255 and Kate or Paul will be happy to discuss any questions you may have.
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