Collective redundancies - Amendment to notification rules

In March 2006, the Government put forward proposals in a consultation document to make a minor change to the law on collective redundancies concerning the duty on employers to inform the Secretary of State about collective redundancies. The amendment was proposed as a consequence of the European Court of Justice decision in the case of Junk v Kühnel, in which it was ruled that notification of redundancy must be given before a notice of dismissal has been issued.

The existing rules require notification to be given

• at least 30 days before the first of the redundancies takes effect where it is proposed to dismiss between 20 and 99 employees as redundant within a period of 90 days or less, and
  
  
• at least 90 days where it is proposed to dismiss 100 or more employees within a period of 90 days or less.

It is possible, therefore, under these rules for employees with long service to be given only 30 days notice of redundancy, which could be considerably less than their statutory or contractual notice periods.

In September 2006, the DTI published details of the responses that had been received and, in the light of the general support for the proposal, the change to the legislation is introduced from 1 October 2006.

To bring UK legislation into line with European law, the Collective Redundancies (Amendment) Regulations 2006 amend the first two subsections of section 193 of the Trade Union and Labour Relations (Consolidation) Act 1992 (TULRA) to read as follows. The additional wording is shown in bold.

The Government has decided that the similar wording in section 188 of TULRA, with reference to the duty of an employer to consult with employee representatives before a decision on redundancy is taken does not need to be amended in this way as it refers to the consultation starting "in good time" before the first of the dismissals takes place. The phrase "in good time" must be construed in the light of the Junk judgment as meaning that consultations are commenced in time for them to be completed before notices of dismissal are issued. DTI guidance now clarifies this point.

...back to 21 September 2006

Further information:
The Collective Redundancies (Amendment) Regulations 2006

The UK Payroll News is sponsored by HRD & Payroll Solutions

Discuss this news item in the PayPerShop Forum

The Government proposes to make a minor change to the law on collective redundancies concerning the duty on employers to inform the Secretary of State about collective redundancies. The amendment is being proposed as a consequence of the European Court of Justice decision in the case of Junk v Kühnel, in which it was ruled that notification of redundancy must be given before a notice of dismissal has been issued.

The existing rules require notification to be given

• at least 30 days before the first of the redundancies takes effect where it is proposed to dismiss between 20 and 99 employees as redundant within a period of 90 days or less, and
  
  
• at least 90 days where it is proposed to dismiss 100 or more employees within a period of 90 days or less.

It is possible, therefore, under these rules for employees with long service to be given only 30 days notice of redundancy, which could be considerably less than their statutory or contractual notice periods.

The consultation document seeks views on whether the proposed change in the law is required, and asks for comments on the detailed drafting in the Regulations. The closing date for the consultation is 9 June 2006.

...back to 6 April 2006

Further information:
Collective Redundancies - Employers' Duty to Notify the Secretary of State

The UK Payroll News is sponsored by HRD & Payroll Solutions

Discuss this news item in the PayPerShop Forum