In June this year Employment Relations Minister Norman Lamb published a new package of proposals to reform rules for consulting staff about large-scale redundancies, the consultation period for which ends on September 19.
The new measures are aimed at improving the ability of companies to respond to changing economic conditions and improving the quality of the collective redundancies process.
Currently large employers have to consult with their staff for 90 days if there is a threat of large-scale redundancy. Ministers want to reduce this period and to produce a new Code of Practice to improve the quality of communication between managers and staff. They are also seeking to reduce uncertainty and to make sure that employers can better respond to changes in market conditions.
The consultation has been seeking views on a number of proposals including introducing a new, non-statutory Code of Practice, reducing the 90-day minimum period for large redundancies – meaning over 100 staff – to 45 or 30 days and improving the guidance for employers and employees on the support on offer form the Government.
In June Norman Lamb said: “It is never easy for employers or employees when redundancy is a possibility, but it’s clear that the current arrangements are not working in the best interests of either staff or managers.
“Our reforms are about improving the quality of consultations – this really is a case of quality over quantity. The call for evidence showed that the current arrangements are not fit for purpose for the modern labour market and I would encourage people with an interest to get involved in the consultation.
“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.”