Cut to large scale redundancy time

The Government is planning to create a more flexible labour market by halving the length of time before collective redundancies can take place to 45 days.

The move is designed to help employees and businesses alike when it is introduced next April, employment relations minister Jo Swinson said. Plans have also been unveiled to exclude fixed-term contracts from collective redundancy agreements when they come to the end of their “natural life”.

A consultation on the changes produced a strong argument in favour of shortening the 90-day period, the minister said.

“The process is usually completed well within the existing 90-day minimum period, which can cause unnecessary delays for restructuring, and make it difficult for those affected to get new jobs quickly,” she added.

“Our reforms will strike an appropriate balance between making sure employees are engaged in decisions about their future and allowing employers greater certainty and flexibility to take necessary steps to restructure.”

Reducing the present 90-day period to 45 days will still offer employee representatives a statutory right to contribute to the process, a Business Department spokesperson said. Tim Thomas, head of employment and skills at EEF, the manufacturers’ organisation, said:

“Today’s announcement will send a strong signal to industry that the Government is committed to creating the flexible labour market that it needs.”

IBB’s Employment Team provides advice on the employment aspects of all major business decisions. To contact a member of the team for advice, call us on 01895 207892 or email employment@ibblaw.co.uk