The Government plans to cut the minimum consultation period for large-scale redundancies (over 100 staff) from 90 days to 45 days.  An employer will have to ensure it complies with all the consultation obligations within a far shorter timeframe or it may be penalised for failure to consult.

According to the Government, the 45-day period will “allow employers to restructure more quickly” and enable those made redundant to “take advantage of career resources and begin the alternative job search sooner”.  Employer associations agree that the change to 45 days will facilitate quicker restructuring and create a more flexible labour force.

Unsurprisingly, unions disagree with these views.  They see the change as a further dilution of employees’ rights and another step that makes it easier to sack staff.

Employers will have been planning redundancies for weeks, if not months, so usually have an idea which, if any, employees are staying and which are leaving post-restructure.  However, from personal experience I know that many employees first learn of an impending redundancy when they are called en-masse into a meeting with senior management and are told their department will be affected.

It may take weeks for an employee to move beyond the shock and anger triggered by the announcement and start planning for the future.  For many employees, the 45-day consultation period will be too short a time to find new employment – particularly given the current economic climate – or to decide how to cope financially with an indefinite period of unemployment.

The changes will come into effect in April 2013.