Minimum Redundancy Consultation period to reduce to 45 days

Changes are likely to be implemented by 6 April 2013, as follows:

• The Government will remove the 90 day minimum period for consulting with employees of 100 or more; and replace it with a 45 day minimum period.   This change and its impact will be reviewed once it has had time to take effect;
• The Government has asked ACAS to prepare new non-statutory guidance on collective redundancy consultations.  This will have the aim of addressing the principles and behaviours of good quality consultation, focusing on dealing effectively with the most contentious issues. The guidance will allow businesses the flexibility they need to tailor the consultation process appropriately for them.  It will also give further guidance as to what amounts to an establishment; and
• The Government will legislate to make clear that fixed term contracts which have reached the end of the agreed termination point are excluded from obligations for collective redundancies consultation.

To view the Government’s Response paper, click here.

For further information or advice on how this may impact on your organisation, or if you would like to learn more about how we can help you with handling redundancies, contact Matthew Gregson on 0121 212 7430 or [email protected].

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