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A new package of proposals to reform rules for consulting staff about large scale redundancies has been published by Employment Relations Minister Norman Lamb.
The new measures, outlined in a consultation, are aimed at improving the ability of companies to respond to changing economic conditions and improving the quality of the collective redundancies process. The process will also help to relieve the impact of uncertainty suffered by all employees over a long period of time.
Currently large employers have to consult with their staff for 90 days if there is a threat of large scale redundancy. Ministers want to reduce this period and to produce a new Code of Practice to improve the quality of communication between managers and staff, to reduce uncertainty and to make sure that employers can better respond to changes in market conditions.
The changes will mean that employers can restructure more effectively and that the workforce is more flexible, while ensuring that employees have access to good quality consultations. The Government believes that this will mean that better decisions are made and limit the uncertainty and stress of the redundancy process.
As well as these important proposals for change, there are some elements that the Government propose to leave as they are, most notably the Protective Award. The Protective Award currently stands at a maximum of 90 days’ pay for each employee affected by a failure to consult and is paid by the employer.