by Clare Lassiter, BA (Hons), Chartered MCIPD, PGDip
Senior HR Consultant
Did you know that, if your organisation is planning a high number of redundancies, it has to abide by more specific rules than if just a handful of roles are at risk?
If 20 or more roles within a single establishment are proposed for redundancy within a 90 day period, the employer is obliged to undertake a collective consultation for redundancy.
Collective Consultation for Redundancy? What does that actually mean in practice?
The collective consultation rules (covered by the Trade Union and Labour Relations (Consolidation) Act 1992) state that you must advise the Redundancy Payments Service (RPS – a government body) about your planned redundancies at least 30 days before the first dismissal, for 20-99 redundancies, and a minimum of 45 days before if there are more than 100. Fines apply if you do not adhere to these requirements for large scale redundancy consultation.
And there is a process to follow. You need to consult employees and their representatives within a prescribed time period (at least 30 days before the proposed date of any redundancy for 20-99 redundancies, and a minimum of 45 days in the case of 100+ redundancies).
Do we have to ensure that the collective consultation was genuine?
Collective consultation for redundancy should be a genuine exercise in discussing the proposals, as well as demonstrating that you tried to reach an agreement. If you don’t employees could claim a “protective award from you” – up to 90 days’ pay for each affected employee – via an employment tribunal. So it is in your best interest to follow due process. And there will be two phases: collective consultation and then individual consultation. For the former, you will either need to work with any recognised trade union or, if there is none, elected employee representatives.
Need help with your collective consultation for redundancy? We at Pure Human Resources can guide you at every step, whether it be light touch advice or full attendance and documentation provision, or somewhere in between. Get in touch today.
