Plans to alter redundancy rules

The Government has proposed plans to reduce the amount of time large companies are given to consult with staff over redundancies. Ministers want to install a new code of practice to improve the quality of communication between managers and employees, cutting the time period for discussions over job losses from 90 days to 45 or even 30 days. Employment Relations Minister Norman Lamb says it is clear that the current arrangements are not working, labelling them “not fit for purpose” for the modern labour market. He added: “At present, fear and uncertainty can hang over a workforce for three months, sometimes resulting in some of the best employees choosing to leave even if they would not have ultimately been made redundant.” However, the Trades Union Congress (TUC) said there is no need to change the current arrangements. Brendan Barber, TUC general secretary, declared that the existing 90-day consultation rules are working “perfectly well” and that any alterations to them would make what is already a very unsettling time even more difficult for everyone involved. He said: “Shortening the notice period will not lead to a better process. It takes time for unions and employers to consider carefully what alternatives there may be to job losses and what the impact on the remaining workforce will be.” Our Employment team provides advice on the employment aspects of all major business decisions. For advice, contact a member of the team, call us on 08456 381 381 or email enquiries@ibblaw.co.uk.