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Ian Lucas, minister for Business and Regulatory Reform, has recently circulated advice to insolvency practitioners reminding them of the duty to consult employees facing redundancy.

He stated that redundancy must be carried out sensitively and with due regard to the interests and legal rights of employees. He also indicated that his officials would monitor cases where protective awards were made as a result of the failure to comply with collective consultation obligations.

Reference is also made in his letter to the fact that where 20 or more redundancies are to be made the Secretary of State must be notified on the appropriate form. Failure to do so is a criminal offence and can attract a maximum fine of £5,000.

When in doubt, insolvency practitioners are urged to take advice in advance of making redundancies.