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Call for evidence – Collective Redundancy Consultation Rules

As part of the Employment Law Review the Government has issued a Call For Evidence to establish the advantages and disadvantages of the current rules on collective redundancy consultation including the implications of reducing the minimum time periods when 100 or more redundancies are proposed, to 60, 45 or 30 days.

Employers have said during the Employment Law Review that the current rules on collective redundancy consultation slow their ability to restructure effectively and can put future business success at risk. They report that the difficulty in effecting redundancies has a negative impact on employers’ confidence in hiring people, slows employees’ reengagement in the labour market and makes it harder for businesses to restructure to react effectively to changing market conditions. The Call for Evidence, which closes on 31 January 2012, considers four main areas: (i) the process of consultation, including the ability to reach agreement and the issue of what defines an ‘establishment’; (ii) the minimum periods for consultation and notification, including the implications of reducing the minimum time period when 100 or more redundancies from 90 days to 60, 45 or 30 days; (iii) the implications of the current 90 day minimum time consultation period on high impact redundancies; and (iv) the link with TUPE and insolvency legislation.

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