Partner Article

Changes Introduced to Redundancy Consultation (except in NI)

New rules are coming into force that will reduce the time employers need to consult with representatives for proposals to dismiss 100 or more employees due to redundancy. The Trade Union and Labour Relations (Consolidation) Act 1992 (Amendment) Order 2013 (currently in draft, due to be introduced any day now, and applying from 6 April 2013), will amend the halve the length of time that employers need to consult following proposals for redundancies affecting 100 or more employees – from 90 days to 45 days.

Applying to England, Wales, and Scotland – Northern Ireland has parallel legislation that is currently not subject to amendment so will continue (to thedisadvantage of employers according to the CBI) to require a consultation period twice as long as in Great Britain – the amendment to the Trade Union and Labour Relations (Consolidation) Act 1992 will produce a new section 188 of the Trade Union and Labour Relations (Consolidation) Act 1992, but controversially only for “proposals to dismiss as redundant 100 or more employees at one establishment within a period of 90 days or less which are made on or after 6th April 2013” (article 2 of the Order): as “proposals to dismiss” are not deemed to be defined in law, there is a grey area in the law that will apply at least between now & July – when the 90 days would elapse for any proposals to dismiss anyway.

While there are respected opinions that are wary of what ‘makes a proposal’, this concern would not be applicable after July – after 90 days have elapsed anyway – and are unlikely to apply even now: from an EAT judgment in MSF v. Refuge Assurance Plc & Anor [2002] UKEAT 1371_99_1502 (15 February 2002), it seems that a proposal should be clear, and is more than a mere contemplation of, or consideration of, dismissal: see paragraphs 45-48.

This was posted in Bdaily's Members' News section by Karl Limpert .