Collective redundancy consultation
This call for evidence seeks views on the impact of current rules on collective redundancy. It aims to understand the challenges in pursuing collective redundancy consultation, including the barriers to starting consultation and achieving agreement.
Through the Employment Law Review and the Red Tape Challenge, the Government is seeking to ensure that the UK has a labour market where both employers and workers are informed and empowered and able to negotiate their relationship with minimal intervention by Government.
Employers have said during the Employment Law Review that the current rules on collective redundancy consultation slow their ability to restructure effectively and can put future business success at risk. They report that the difficulty in effecting redundancies has a negative impact on employers’ confidence in hiring people, slows employees’ reengagement in the labour market and makes it harder for businesses to restructure to react effectively to changing market conditions. Ongoing uncertainty can also have a serious impact on workforce morale and productivity.
A minimum time period before redundancies can take place after a consultation begins has been in place in the UK since 1975. Government believes that review is now appropriate to take account of:
- the increase in the pace of decision-making in all areas of life as a result of innovations in information and communications technology; and
- the need to facilitate a labour market that can generate economic growth in the face of a global economic downturn
The call for evidence considers four main areas:
- the process of consultation, including the ability to reach agreement and the issue of establishment
- the minimum periods for consultation and notification
- high impact redundancies
- the link with TUPE and insolvency legislation
This call for evidence is an important part of the review: we want to know what you think and why.
