Collective redundancy consultation period reduced

We are normally reporting on increases within our updates, however on this occasion the rare situation has occurred when the Government has actually made a reduction, which should benefit both employers and employees. This change will take place with effect from 6th April 2013.

Thankfully at Alcumus there are few occasions when we have to advise on redundancy situations affecting 100 employees or more. However it is worthy of note that should you find yourself in this unfortunate situation the current statutory requirement of a 90-day consultation period where 100 or more redundancies are proposed, will reduce to 45 days.

It will still be a requirement under the Trade Union and Labour Relations (Consolidation) Act 1992 to consult collectively with the appropriate representatives of the potentially affected employees; however this will be at least 45days before the first dismissal takes effect as opposed to 90 days.

The Government’s main aim for implementing this change is 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 addition to reducing the consultation period, the Government has also instructed ACAS to issue a code of practice on the principles of redundancy consultation.