The Labour Government's Employment Rights Bill (ERB) will introduce the most far-reaching changes to UK employment law in a generation. Key aims of the ERB and other employment law reforms set out in their Plan to Make Work pay include “ending one-sided flexibility” and strengthening collective voices at work. We have written previously about the proposed reforms to trade union access and recognition and fire and rehire that are part of these package of reforms.
In addition, the Labour Government has proposed changes to the collective redundancy consultation framework. In this article, we examine the proposed changes and the significant impact this could have for employers.
The law now
When are the collective redundancy obligations triggered?
- Where an employer is proposing to dismiss as redundant 20 or more employees at “one establishment” within a period of 90 days or less, it must undertake collective redundancy consultation.
- The phrase “one establishment” at present means the specific unit or entity to which the employees who are being made redundant are assigned to carry out their duties. There are uncertainties as to its application in some circumstances, including as to remote employees, but it generally has a strong geographic element, such that different sites or different retail outlets will usually be separate establishments.
What are the collective redundancy obligations?
Once the collective redundancy obligations are triggered an employer must:
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