Collective Redundancy Consultation

The obligation to collectively consult will depend on the number of people impacted across the business, rather than in one workplace

Labour plan to change the law on collective redundancy consultation so that whether the obligation to collectively consult has been triggered will depend on the number of people impacted across the business, rather than in one workplace.

Proposed Changes

Labour plan to change the law on collective redundancy consultation so that whether the obligation to collectively consult has been triggered will depend on the number of people impacted across the business, rather than in one workplace. This is a significant proposal and would, in effect, reverse the Woolworths case in which it was decided that it is the entity or “unit” to which the workers made redundant are assigned to carry out their duties that constitutes the establishment when counting the number of dismissals to determine whether the duty to collectively consult has been triggered.

It is not clear whether Labour also plan to change the number of redundancies that would trigger collective consultation requirements. Currently, it is 20 or more within a period of 90 days.

This plan will mean that employers with more than one site will need to keep a close eye on the number of redundancies they plan across sites to check whether collective consultation obligations have been triggered, and collective redundancy consultation will be required more often than is currently the case.

Timescales

These changes may be implemented relatively quickly because primary legislation is already in place. However, this change was not mentioned in the King’s Speech which would suggest they are not a priority for this session of parliament.

Top Tips

If you have more than one site and are considering redundancies keep a close eye on the number of employees who will be involved to ensure you do not exceed the 20 in 90 day period in the short-term.

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