Rules over redundancy talks set to be relaxed

Julian Harris
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THE GOVERNMENT announced plans to cut back red tape surrounding large scale redundancies yesterday, in a move welcomed by business groups but opposed by trade unions.

Under new proposals firms will no longer have to consult employees for at least 90 days if planning to lay off more than 100 staff, the department for business, innovation and skills (BIS) said.

The minimum consultation period is likely to be slashed to “45 or 30 days”, while BIS wants to encourage “better quality” talks between firms and employees threatened with redundancy.

“The reality is typically that the company has already made up its mind and the consultation is just a box ticking exercise,” employment partner Michelle Chance from Kingsley Napley told City A.M.

The Institute of Directors and British Chambers of Commerce (BCC) both welcomed the change.

But the TUC said it would worsen an “already deeply unsettling time” for staff at risk of redundancy.