Latest Public Sector News

19.12.12

Redundancy consultation period to be halved

The amount of time businesses will have to consult for before implementing large-scale redundancies is to be cut from 90 days to 45, the Government has announced.

Employment relations minister Jo Swinson said the plans were aimed at helping businesses and workers. From April, redundancy plans involving 100 or more workers will no longer need a full 90-day consultation.

A TUC spokesperson said: “Making it easier to sack people is the last thing we need.”

But Swinson argued: “The process is usually completed well within the existing 90-day minimum period, which can cause unnecessary delays for restructuring, and make it difficult for those affected to get new jobs quickly.

“Our reforms will strike an appropriate balance between making sure employees are engaged in decisions about their future and allowing employers greater certainty and flexibility to take necessary steps to restructure.”

Dr Adam Marshall, director of policy at the British Chambers of Commerce, said: “In the 21st century requiring a business to spend a quarter of a year consulting on how to restructure is unnecessary, frustrating and potentially disastrous.”

But shadow employment relations minister Ian Murray said: “David Cameron should be making it easier to hire, not easier to fire. We need a real plan for jobs and growth, not an attack on people's rights at work.”

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