Review of Redundancy

The Government has recently published it’s proposed changes to the collective redundancy consultation scheme. The consultation will close on 19 September 2012 and, if the consultation supports change to the current rules, the Government will seek to introduce the changes in Spring 2013.


To create a more effective regime, the Government is consulting on a package of reforms. The key reforms are based around:



• Reducing the minimum 90-day consultation period before redundancies of 100 or more employees can take effect. The Government is seeking views on the impact of reducing this to either a 30-day minimum period for all collective redundancies or a 45-day minimum period for planned redundancies of 100 or more employees.


• Issuing a new, non-statutory, Code of Practice, which would address the principles and behaviours behind a good quality consultation, with a particular focus on dealing effectively with the most contentious issues. The Code would provide guidance but allow enough flexibility for parties to tailor the consultation process appropriately. The Government has identified how to define an "establishment" as a particular issue, which would be addressed in the Code, along with the application of the collective redundancy consultation process to fixed-term contracts, which it will seek to address through guidance and the Code.


• Improving guidance for employers and employees on the support on offer from Government. The Government will review the existing guidance to ensure that it is accurate and fit for purpose.

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