We are often asked what Collective Consultation means in a Redundancy situation, and how does the company know if it applies to them. It is vital for any employer to be sure what their obligations are in any redundancy situation. This article relates specifically to those employers who are proposing to dismiss 20 or more employees in a redundancy situation in 90 days.

The Law Trade Union and Labour Relations (Consolidation) Act 1992:

A Duty arises where an employer is proposing to dismiss 20 or more employees at one establishment within 90 days.
Notification to the Secretary of State: An employer that is proposing to dismiss as redundant 20 or more employees at one establishment within a period of 90 days or less, must notify the Secretary of State, in writing, of the proposal before giving notice to terminate any of the relevant employees’ contracts. The employer must notify using a form HR1. The employer must also provide a copy of this form to all representatives that it has a duty to consult.
Time limits: Where an employer is proposing to dismiss 100 or more employees at one establishment within a period of 90 days or less, the Secretary of State must be notified at least 45 days before the first dismissal takes effect. Where an employer is proposing to dismiss 20 to 99 employees at one establishment within a period of 90 days or less, the Secretary of State must be notified at least 30 days before the first dismissal takes effect.
What is an establishment: An “establishment” is the entity (ie the unit) to which the employees are assigned to carry out their duties, not the employer’s organisation as a whole. Where the employer operates from more than one site, each individual site is likely to be treated separately for notification purposes. Therefore, the employer must complete a separate form for each site where 20 or more redundancies are proposed.
Consultation: The employer needs to run a formal process, consulting with elective representatives. Most small employers do not have collective bargaining arrangements with Trade Union representatives, and therefore they will need to hold elections for representatives. Consultation must run for at least 30 days or 45 days if 100 or more employees are proposed.

Redundancy requires planning, communication and a clear consultation process, for small employers without an HR team this can be daunting. This article is not legal advice and if you need support with a redundancy situation, contact our team today on 01483 362732 or hello@guildford-hr.co.uk so we can discuss how we could help.

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