Collective consultation period is reduced to 45 days
The 90-day consultation period where 100 or more redundancies are proposed reduces to 45 days from 6 April 2013.
Under s.188(1A) of the Trade Union and Labour Relations (Consolidation) Act 1992, where an employer is proposing to dismiss as redundant 100 or more employees at one establishment within a period of 90 days, it is required to consult collectively with the appropriate representatives of the affected employees at least 90 days before the first dismissal takes effect.
In June 2012, the Government consulted on changes to the collective redundancy consultation rules. The Government's main aims were to:
- improve the quality of consultation;
- ensure that employers can restructure effectively to respond to changing market conditions; and
- balance the interests of redundant employees with those who remain.
In its consultation, the Government also highlighted three key elements to achieving a better redundancy process: a straightforward legislative framework; a positive relationship between the employer and employee representatives; and improved procedures to allow appropriate Government engagement.
The Government's response to the consultation confirms that it will:
- reduce the 90-day consultation period where 100 or more redundancies are proposed to 45 days;
- ask Acas to issue a non-statutory code of practice that will address the key principles of redundancy consultation; and
- exclude fixed-term contracts that have reached their agreed term from the obligation to consult collectively.
The changes will come into force on 6 April 2013.
- Government response to consultation on changes to the collective redundancy rules (PDF format, 352K) Read the Government's response to the consultation on the UK Government website.
- Fifth statement of new regulation (PDF format, 464K) Read the document confirming the changes to collective redundancy consultation legislation on the UK Government website.
Good practice guide on informing and consulting during a collective redundancy process This section of the XpertHR good practice manual discusses how employers and employees can exchange views and ideas, issue and receive instructions, discuss problems and consider developments in a collective redundancy situation.
The XpertHR quick reference section includes a summary of the duty to consult representatives, who the appropriate representatives for collective redundancy consultation are, and the information to be communicated to representatives.