The government is consulting until 19 September on proposals aimed at "revitalising" the collective redundancy rules. The key suggested reform is to reduce the minimum period from the start of consultation to the dismissal taking effect where there are 100 or more proposed redundancies at one establishment. The current 90 day period could be reduced to 45 or 30 days. The potential penalty for failure to comply is to remain 90 days' pay per affected employee.
A new non-statutory code of practice will give guidance on issues such as the definition of an "establishment", when consultation should start and what it should cover. Existing government guidance will be reviewed and updated.
The interaction between the collective redundancy consultation rules and TUPE is to be considered as part of BIS's review of TUPE which is "operating to a longer timescale" than the review of the collective redundancy rules. (Rumour has it that the government is currently minded to remove the service provision change provisions in TUPE).
Key contacts
Steve Bell
Managing Partner - Employment, Industrial Relations and Safety (Australia, Asia), Melbourne
Emma Rohsler
Regional Head of Practice (EMEA) - Employment Pensions and Incentives, Paris
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