How To Inform And Consult During A Collective Redundancy Process
To avoid potential unfair dismissal claims, meticulous compliance with the legal processes and procedures, including the duty to inform and consult, is necessary when considering collective redundancies. This article briefly explains an employer’s obligations.
What is the duty to inform and consult in relation to possible redundancies?
If you, as an employer, are considering making 20 or more employees redundant over a period of 90 days or less, this is classed as a collective redundancy and the Trade Union and Labour Relations (Consolidation) Act 1992 (TULRCA) provides that you must:
- Inform and consult with appropriate employee representatives (for example trade union reps).
- Tell the Secretary of State about the plans for redundancies. In practice, you must notify the Department for Business, Energy and Industrial Strategy (BEIS) using Form HR1
You should be aware that the definition of dismissal under TULRCA is broad and includes ‘dismissals not related to the individual concerned…’. Therefore, it would include volunteers for redundancy, those leaving under a settlement agreement and ‘some other substantial reason dismissals’ and these individuals would need to be counted towards the number of employees you are proposing to dismiss for the purpose of ascertaining whether collective consultation applies.
What are the timescales for informing and consulting with employee representatives and notifying the BEIS??
If you are considering making more than 100 employees redundant, you must begin the information and consultation process at least 45 days before the first dismissal occurs. Notification to the BEIS must also occur within this timeframe. If 20 – 100 people are being considered for redundancy, the period for both consultation and notification is 30 days.
How do I manage the information and consultation process?
Ideally, you should meet with ‘at-risk’ employees before formal consultation takes place to explain:
- The reason redundancies are being considered,
- How many people are at risk, and
- What alternatives to redundancy have been considered.
You need to provide all employees at risk of being made redundant with a letter that states:
- the reasons for redundancies
- the numbers and categories of employees involved
- the number of employees in each category
- how you plan to select employees for redundancy
- how you will conduct redundancies
- how you will work out redundancy payments
At the consultation meeting, at-risk employees can have a representative accompany them. You should inform the employee of the proposed selection criteria and ask them if they have any counter-proposals to the making of redundancies or the proposed selection criteria. This is also a chance to provide details of the redundancy package the employee could expect if they are in fact made redundant.
The consultation meeting should be followed-up with a letter confirming what was discussed and meeting notes. You should schedule further consultation meetings with at-risk employees to discuss any counter proposals or ways to avoid redundancies that may have been put forward.
It is best practice to ask employees to sign the follow-up letter and meeting notes to confirm they agree and understand the contents.
The consultation process will need to be conducted with trade union representatives or employee representatives directly.
Final words
Our employment law solicitors can advise you on the redundancy process from beginning to end and ensure you are fully compliant with relevant employment law. To find out more about our services, including Ask HR and HR Genie, please call us on 02476 231000 or email enquiries@askewslegal.co
Please note that this article is for information purposes only and does not constitute legal advice.
