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Redundancy Consultation Period to be reduced – but only for 100 or more employees
The government has recently confirmed that it intends to scrap the requirement that employers carry out consultation for at least 90 days when they have to make 100 or more employees redundant.

In place of the 90 day requirement, the government is asking for responses on its proposals for a 45 or 30 day consultation period.

Other proposals include the creation of a new, non-statutory, Code of Practice to give clearer information on how to conduct good quality consultations. The aim being to show quality is better than quantity.

They have also indicated that they intend to provide improved guidance to increase certainty about how to define 'establishment' and how to treat fixed term employees whose contracts come to an end. These are both issues that have been the source of many tribunal cases.

However, it should be noted employers failing to carry out collective consultation may still face substantial financial penalties. The maximum protective award will remain at 90 days pay for each dismissed employee.
Posted on 19 Nov 2016


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