Consultation On Collective Redundancies

Following the Government’s Call for Evidence in relation to collective redundancy, the Department for Business, Innovation and Skills (BIS) has now published a set of draft regulations which change the law relating to collective redundancy consultation.

Following the Government’s Call for Evidence in relation to collective redundancy, the Department for Business, Innovation and Skills (BIS) has now published a set of draft regulations which change the law relating to collective redundancy consultation.

The draft regulations – The Trade Union and Labour Relations (Consolidation) Act 1992 (Amendment) Order 2013 – can be seen at: http://www.legislation.gov.uk/ukdsi/2013/9780111534106 and are due to take effect from 6 April 2013.

Currently, where an employer is proposing to dismiss as redundant 100 or more employees at one establishment, consultation must begin at least 90 days before the first dismissal takes effect. From 6 April 2013, this 90 day period will be reduced to 45 days.

Where an employer is proposing to dismiss as redundant between 20 and 99 employees in a 90-day period, consultation must begin at least 30 days before the first dismissal takes effect, and this time frame is not due to change under the draft regulations.

The regulations also confirm that an employee who is engaged on a fixed-term contract, and who has reached the end of the fixed term will not count for the purposes of collective redundancy consultation obligations.

It is anticipated that the changes will reduce the burden on struggling businesses which find themselves needing to make mass redundancies.