Unions claim that halving 90-day period before redundancy will not create a single extra job
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guardian.co.uk, Friday 5 April 2013 16.24 BST
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Employers - such as HMV, which recently made large numbers of staff redundant – will now have to consult for half the time they did previously. Photograph: Graham Turner for the Guardian
Rules halving the time a company needs to consult with staff before making large-scale redundances, which come into force on 6 April, will do nothing to increase employment and could be counter-productive, unions say.
From 6 April, firms considering laying off 100 or more staff have to undertake a minimum consultancy period of 45 days, during which time they are expected to talk to staff and unions before deciding how many and which jobs will be lost. Under the old rules on collective redundancy, the minimum period was 90 days.
The change is part of the government's wider review of employment law, which has already seen the doubling of the number of years an employee needs to work at a company before being able to make an unfair dismissal claim. According to ministers, the move will give businesses flexibility to respond to changing market conditions and create new opportunities. However, the TUC's general secretary, Frances O'Grady, said the measure was "not going to create a single extra job and are likely to be counter-productive". She added: "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."
The Department for Business, Innovation & Skills said a consultation on the changes conducted in 2012 had resulted in a strong argument for shortening the 90-day period, and moving to 45 days would still allow full employee engagement including the statutory right to contribute to the process.
The new rules, which do not apply in Northern Ireland, exclude fixed-term contracts, which means anyone who has an end date written into their contract will not need to be consulted about what happens to them afterwards. Employers will, however, have to consult fixed-term staff if they want to make their positions redundant early. Firms that want to make between 20 and 100 posts redundant will have to consult with staff for a minimum of 30 days, as previously.
Chris Fisher, employment partner at law firm Mayer Brown International, said the change would be welcomed by employers. "Most employers conclude their collective consultation well within a 90-day period and often the employees themselves are keen to move on to one-to-one redundancy discussions much sooner in the process," he said. "This should help remove some of the red tape and make it easier for businesses and employees in what is often a fraught and challenging time."
