Businesses want less consultation over redundancies January 2012
Posted date: 25 January 2012
UK businesses are in favour of a reduction in the 90-day collective consultation period for redundancy, according to research.
A timeframe of 30 to 45 days was thought to be more appropriate and workable by 80 per cent of respondents. DAC Beachcroft LLP found that the current allowance gave rise to additional costs, uncertainty for staff and unprofitable delays.
As part of the Government’s consultation the law firm canvassed its clients about the legislation as it stands. They established that there were also concerns about the definition of some of the terminology, such as the meaning of “establishment”, surrounding redundancy provisions.
The Coalition is also considering updating the Transfer of Undertaking (Protection of Employment) (TUPE) Regulations. The results showed that employers were uncertain when they could start a collective redundancy process in advance of a TUPE transfer. A total of 82 per cent said they would like clarification over whether they could do this without running a legal risk.
“There is a clear message to Government that UK business is finding the collective redundancy process cumbersome and confusing in practice,” said Chris Syder, Partner at DAC Beachcroft LLP. “In the current economic climate, every effort should be made to help businesses in their attempts to adapt commercially to challenging market conditions.”
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