Just before Christmas the Government announced further changes to employment law under the auspices of the ongoing “Employment Law Review”. This is a government wide review of employment law the aim of which is to clarify current rules and make them simpler and easier for businesses.
This time it is collective redundancies which are in the spotlight. It was announced on 18 December 2012 that a number of changes are being made to the way that collective redundancies operate. The main proposed changes are:
• to reduce the current 90 day minimum period, before very large scale redundancies can take place, to 45 days. Very large scale redundancies means in this case redundancies of 100 or more
• to introduce legislation to make clear that fixed term contracts which have reached the end of their natural life are excluded from obligations for collective redundancies consultation
• to introduce new non-statutory Acas guidance to address a number of key issues affecting collective redundancies consultation.
The most significant and controversial change is to the 90 day minimum period. During the consultation, Trade Unions in particular raised concerns that reducing the 90 day period would put employees at a disadvantage and make it easier for unscrupulous employers to take advantage of them. However some employers argued that there should be a reduction to a 30 day minimum period on the basis that they were hampered by the current need for a 90 day minimum. The Government has therefore decided on a reduction to a 45 day minimum but has stated that this will be reviewed once the impact of the change becomes apparent.
The changes will be made by way of secondary legislation and the government anticipates that they will come into force on 6 April 2013.
The Government’s full response to the consultation can be found at:
https://www.gov.uk/government/consultations/collective-redundancies-consultation-on-changes-to-the-rules
If you have any Employment Law queries please do contact one of our team here at Hanne & Co on info@hanne.co.uk
