The National Minimum Wage (Amendment) Regulations 2024 came into force on 1 April and provided...
What are the rules which govern redundancies of over 20 people?
Employers who intend to make 20 or more employees redundant ‘at one establishment’ over a period of 90 days or less must consult with a recognised independent trade union. If no trade union is recognised, consultation must take place with other elected representatives of the affected employees (see section 188(1A) of the Trade Union and Labour Relations Act (TULRCA) 1992).
If there are no employee representatives, representatives must be elected solely for the purpose of the redundancy consultation. Detailed requirements govern the election procedures and these must be complied with.
How do you consult with the representatives?
The consultation should include:
ways of avoiding the redundancies or reducing the number of employees to be made redundant
mitigating the effects of redundancies, and
the reasons for redundancy.
The employer must consult with appropriate representatives with a view to reaching agreement. This duty applies even when the employees to be made redundant are volunteers.
What is the timescale for collective redundancy consultation?
Where 20 to 99 redundancies are proposed within a 90-day period, consultation must have begun at least 30 days before the first dismissal is due to take effect.
Where 100 or more redundancies are proposed within a 90-day period, consultation must have begun at least 45 days before the first dismissal takes effect.
As well as these minimum time limits, there is a requirement that the consultation has begun "in good time"
Obligation to notify Secretary of State (for Business, Energy and Industrial Strategy)
Under Section 193 of TULRCA, employers are obliged to notify the Secretary of State (for Business, Energy and Industrial Strategy) on Form HR1 where they are proposing to dismiss as redundant 20 or more employees "at one establishment" within a 90-day period. The amount of notice required depends on the number of proposed dismissals
If you need detailed advice on collective redundancy contact our team on 01827 317070 or employment@pickerings-solicitors.com
