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Redundancy: Collective consultation

Redundancy: Collective consultation

Given the current climate businesses may be thinking about making redundancies. If your business is proposing to make 20 or more employees redundant at one establishment within a 90 day period or less you must carry out collective consultation with the appropriate representatives before doing so. Here are a few things that employers’ should be aware of when proposing redundancies:

  • Prepare a business case for the proposed redundancies.
  • Ensure that when you are preparing a selection criteria or basis for selection that it is not discriminatory.

Where you are proposing to make 100 or more employees redundant at one establishment the minimum consultation period is 45 days but where 20-99  redundancies are proposed the minimum consultation period is 30 days.

  • Appropriate representatives would be:

– Trade Union representatives if the employees are of a description in respect of which a trade union is recognised by their employer; or

– Employee representatives elected by the affected employees in accordance with the applicable legislation.

  • You must disclose in writing to the appropriate representatives specific information regarding the redundancy proposals as prescribed by legislation.
  • You must notify the Secretary of State for BEIS of the redundancy proposals by completing and sending an HR1 form.
  • Individual consultation should also take place with affected employees before any notices of termination are issued.
  • No redundancy dismissals should be effective within the 30 or 45 day consultation period.
  • The Coronavirus Job Retention Scheme guidance states that furloughed employees can undertake duties and activities for the purpose of individual and collective representation of employees and other workers.
  • In the current climate consultations are likely to occur via video calls or conference calls.

If you would like further information or bespoke advice on collective consultation, please contact a member of our employment law team.

 

Posted on May 14, 2020

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