Plan to cut collective redundancy consultation period sparks union anger

The Government is to halve the minimum period for consultation in large-scale collective redundancies from April 2013.

Under the plans, unveiled in its response to the Collective Redundancies consultation, the current 90-day minimum consultation period in cases where 100 or more redundancies are proposed will be cut to 45 days.

The Government insisted that the move would “still allow full employee engagement and offer employee representatives a statutory right to contribute to the process”.

The response also said ministers would legislate to make clear that fixed-term contracts which have reached the end of their natural life are excluded from obligations for collective redundancies consultation.

However, the response said a fixed-term contract would need to have a clear termination point in order for it to benefit from this exemption.

In addition, the exemption will not apply where the employer is considering early termination of the contract as a result of redundancy.

New non-statutory Acas guidance to address a number of key issues affecting collective redundancies consultation will also be introduced.

The Government said this guidance would address the principles and behaviours behind a good quality consultation, with a particular focus on dealing effectively with the most contentious issues, such as providing guidance on ‘establishment’.

"As collective redundancies happen in a variety of circumstances, which can be unpredictable and change rapidly, the Code will give guidelines but allow enough flexibility for parties to tailor the consultation process appropriately,” the response said.

Employment Relations Minister Jo Swinson claimed that there was a strong argument for shortening the minimum period “which is backed up by hard evidence”.

She added: “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."

The minister insisted that the reforms would “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”.

However, the proposals were strongly criticised by union leaders.

TUC General Secretary Brendan Barber said: “The last thing we need is for the Government to make it easier to sack people. Unemployment has not gone as high as many feared because employers have worked with unions to save jobs, even if it has meant sharing round fewer hours and less work.

“The need to consult unions has made an important contribution to that, and also given staff, many of whom will have had years of loyal service, time to think through their options.”

Barber added: “These measures will not create a single extra job. The idea that an employer will change their mind about taking someone on because the statutory redundancy consultation period has been reduced from 90 to 45 days is close to absurd.

“Removing consultation rights from fixed-term contract staff will seriously increase job and financial insecurity for vulnerable groups of workers, and temporary staff will lose out on redeployment opportunities.”

The changes are to be made through secondary legislation, with draft regulations laid in the New Year.

A copy of the government’s response to Collective Redundancies can be found here.