Important changes to the law on collective consultation

On 6 April 2013, the law on collective consultation changed as follows:

• For all proposals to dismiss as redundant 100 or more employees at one establishment over a period of 90 days or less made on or after 6 April 2013, the length of the period between the start of consultation and the first dismissal taking effect has been cut from 90 days to 45 days.

• The period of time for notifying the Secretary of State of the redundancies is also cut from 90 days to 45 days.

• The ending and non-renewal of fixed term contracts will no longer count as dismissals for the purposes of collective consultation — unless the contract is ended for a redundancy reason before the end of the fixed term.

Unions fought this change which, as TUC general secretary Frances O’Grady said, is “not going to create a single extra job and is likely to be counter-productive. Reducing the time unions and employers can have to agree a “least worst option” is in nobody’s interest and will have a damaging impact, both on those about to lose their jobs and those staying on.”

There are transitional arrangements in place for redundancies that were proposed before 6 April 2013. These remain subject to the requirement for 90 day consultation.

Legislation: Trade Union and Labour Relations (Consolidation) Act 1992 (Amendment) Order 2013. New non-statutory guidance: How to manage collective redundancies, was published by Acas in April 2013.