Collective redundancy changes
Contents
Current rules
Currently, employers who propose to make 20 or more employees redundant within a period of 90 days or less from one business site, must consult with representatives of the affected employees (either with any trade union or employee representatives), and notify the government (by send form HR1) about it.
This must be done 30 days before the first dismissal (if 20 to 99 dismissals are proposed) or 45 before the first dismissal (if 100 or more dismissals are proposed).
Changes to the current rules
The following changes are set to happen:
The number of redundancies triggering collectively consultations
Collective consultations for proposed redundancies at one business site, will start when 20 or more, or at least a specific 'threshold number' are at risk of redundancy within a period of 90 days or less. If this is met, collective consultations must begin at least 30 days before the first dismissal takes effect, or 45 days before the first dismissal if 100 or more redundancies are proposed.
The threshold number will be decided after a consultation ends and new regulations will be needed to confirm it. However, it won't be lower than 20 and the threshold is likely to be either specified number or a number defined by a specified percentage of employees.
The government has stated that if redundancies are being proposed at more than one business site, the minimum trigger figure of 20 employees may be increased. It hasn't given information about the trigger for collective consultations if redundancies are being proposed across the whole of a business (i.e. all business sites).
Timing to send Form HR1
This must be sent at the same time the requirement for collective consultation is triggered. This means the form must be given at least 30 days before the first dismissal takes effect, or 45 days before the first dismissal if 100 or more redundancies are proposed.
Consulting with appropriate representatives
Employers will not be required to consult different groups of representatives together and won't need to consult with the view of reaching the same agreement with all the representatives.
New information requirements if proposed redundancies will not be from one business site
If the employees at risk of redundancy are not all based at one site, employers must inform the appropriate representatives (in writing) of the total number of employees being proposed for dismissal and details of the locations where they're employed.
Increasing the period for collective consultations when proposing to dismiss 100 or more employees
Currently, consultations must continue for at least 45 days before the first dismissal takes place. The government wants to consult on increasing this to 90 days.