Collective redundancy reforms

The Government has proposed a reform around the amount of time employers are required to consult with their employees during collective redundancies.  Currently, employers looking to make redundancies of over 100 jobs or more are subject to a minimum consultation period of 90 days with their employees.

 

The proposals include:

 

– Introducing a new, non-statutory, code of practice to give clearer information on how to conduct good quality consultations;

 

– Reducing the 90 day minimum period for collective redundancies of more than 100 staff to 45 or 30 days; and

 

– Improving guidance for employers and employees.

 

At the time of launching the proposal, Norman Lamb said “the current arrangements are not working in the best interests of either staff or managers.  At present, fear and uncertainty can hang over a workforce for three months, sometimes resulting in some of the best employees choosing to leave, even if they would not have ultimately been made redundant”.

 

The consultation is due to come to a close on 19th September 2012.