Call for evidence on collective redundancy consultation

The Government has launched a call for evidence on the advantages and disadvantages of the rules on collective redundancy consultation. 

The four main areas covered by the call for evidence are:

  • the process of consultation, including the ability to reach agreement and the meaning of "establishment";
  • the minimum periods for consultation with employee representatives and notification of redundancies to the Secretary of State;
  • high-impact redundancies; and
  • how well the redundancy consultation legislation works alongside TUPE and insolvency legislation. 

The Government is considering whether or not to amend the 90-day consultation period where 100 or more redundancies are proposed. It seeks to explore the advantages and disadvantages for employers and employees of reducing the minimum consultation period to 60, 45 or 30 days. 

The call for evidence was issued in response to the Government's employment law review and "red tape challenge" on employment law, when employers indicated that the collective redundancy consultation legislation prohibited their ability to restructure and put the success of the future of their business at risk. Employers reported that the difficulty in effecting redundancies has a negative impact on employers’ confidence to recruit people, slows employees’ re-engagement with the labour market and makes it harder for businesses to restructure to react to changing market conditions. They also said that uncertainty in relation to redundancies can have a serious impact on workforce morale and productivity. 

The Government also seeks to explore the issues for employees, including whether or not they are able to engage meaningfully with their employer during consultation and find alternative employment. 

The call for evidence was launched by Vince Cable, Secretary of State for Business, Innovation and Skills on 23 November 2011, when he announced a package of proposals to reform employment law. The call for evidence is open until 31 January 2012, following which the Government will launch a formal consultation on collective redundancy consultation. 

Also

Government announces "the most radical reform to the employment law system for decades" XpertHR summarises the Government's response to the consultation on resolving workplace disputes. 

Line manager briefing on collective redundancies This XpertHR line manager briefing looks at the law and best practice where the employer is proposing to dismiss 20 or more employees within 90 days or less. 

XpertHR's policies and documents on redundancy include a redundancy policy, a letter to union or employee representatives starting consultation on proposed redundancies and a letter informing the wider workforce about a potential redundancy situation.