Thresholds for Redundancy Consultation

The Labour Party’s new Employment Rights Bill should include a significant change in redundancy consultation thresholds, aiming to strengthen employee protections and rights. This proposed change will have profound implications for employees and union representatives, ensuring more inclusive and comprehensive consultation processes during redundancies.

Current Legislation and Proposed Changes

Under the current law, the requirement for collective redundancy consultation is triggered when a certain number of employees are affected within a single establishment. An ‘establishment’ is usually a place of work or location. Therefore, if an employer plans to make 20 or more employees redundant within 90 days at one location, they must engage in a collective consultation process. This means that employers can make many more than 20 people redundant in one redundancy round, but if they are spread across the UK or various locations, then there may well be no requirement to collectively consult.

Labour's new proposal seeks to broaden this scope. The right to redundancy consultation will be determined by the number of people impacted across the entire business rather than at a single workplace. This means that if an employer plans to make 20 or more employees redundant across multiple sites within a 90-day period, they would still be required to initiate collective consultation.

Impact on Employees

1. Enhanced Protection: This legislative change will provide greater employee protection by ensuring that more redundancy scenarios trigger a collective consultation process. This inclusive approach acknowledges the impact of redundancies on the workforce as a whole, rather than isolating it to individual sites.
2. Improved Communication and Transparency: Employees will benefit from improved communication and transparency regarding redundancy plans. Collective consultation processes require employers to inform and consult with employees' representatives about the reasons for redundancies, the number and types of employees affected, and the proposed method of selecting employees for redundancy.
3. Stronger Representation: Employees will have stronger union representation during redundancy processes. This ensures that their concerns and interests are adequately voiced and considered, leading to fairer outcomes.

Impact on Union Representatives

1. Broader Scope of Influence: Union representatives will have a broader scope of influence, as they will be involved in consultation processes that span multiple sites. This allows for a more comprehensive approach to protecting employees' rights and negotiating fair terms during redundancies.
2. Greater Responsibility: With the expanded scope of collective consultation, the vigilance and proactivity of union representatives will be required in monitoring redundancy plans across entire businesses. This increased responsibility underscores the importance of effective union representation in safeguarding workers' rights.
3. Enhanced Negotiation Power: Union representatives will have enhanced negotiation power during consultations. The requirement for collective consultation in more redundancy scenarios strengthens unions' position to negotiate better terms and conditions for affected employees.

Conclusion

Labour’s proposal to determine the right to redundancy consultation by the number of people impacted across the business rather than at a single workplace marks a pivotal shift towards stronger employee protections. This change will ensure more inclusive and fair consultation processes, empowering employees and their union representatives. By broadening the scope of collective consultation, Labour aims to create a more just and equitable work environment where the rights of employees are safeguarded and employers are held accountable for their actions.

Thompsons Solicitors supports these proposed legislative changes and advocates for employees' rights. We believe that stronger redundancy consultation requirements are essential for promoting workplace transparency, fairness, and justice.