Acas launches new guidance on collective redundancies

Workplace expert Acas has published new guidance on collective redundancies.

A collective redundancy is when an employer proposes to make 20 or more employees redundant within 90 days. This can arise if an employer needs to:

• close or move all or part of their business,
• make cost savings due to a change in customer demand or an efficiency drive, or
• reorganise the way their business is run.

On 6th April new government legislation came into effect which applies to employers proposing 100 or more redundancies. A key change is that employers must start consultation at least 45 days before any dismissals can take effect. This has been reduced from 90 days.

According to Acas Chair Ed Sweeney, 11% of Acas' collective conciliation cases related to redundancies in 2011/12, and of the 925,000 calls to its helpline, around 20% were seeking information on redundancy-related situations.