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Rule changes for collective redundancies

The current 90-day minimum consultation period for large-scale redundancies is to be reduced to 45 days, the Government has recently announced. The 45 days will be a minimum period, with the possibility for businesses to consult for longer if appropriate.

The change affects organisations dealing with redundancies of 100 or more workers. It will be brought in through secondary legislation, and draft regulations will be laid down shortly. The proposed introduction date is 6 April 2013.

Two other changes to collective redundancy rules were also announced. One is to clarify legislation so that fixed-term contracts that have reached the end of their natural life are excluded from obligations for collective redundancy consultation.

The other is to introduce new non-statutory Acas guidance addressing key issues affecting collective redundancies consultation.

If your organisation is restructuring, advisers on the Acas Helpline can help you explore the options and alternatives to redundancy, as well as make sure you have the correct redundancy procedures in place. Call the Acas Helpline on 0300 123 1100 for free impartial advice.

Acas gives detailed online Redundancy guidance and runs practical training courses on Redundancy that explain the law and outline the best approaches for managing people through redundancy situations.

Visit the Acas Training and Business Solutions area for more information.

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