The Government have announced that the requirement for there to be a period of 90 days’ consultation where an employer proposes to dismiss 100 employees or more at the same establishment will be reduced to a period of 45 days with effect from April 2013. The period of consultation required where an employer proposes to dismiss between 20 and 99 employees at the same establishment remains unchanged at 30 days.
The remedy for a failure to consult in these situations is a protective award of up to 13 weeks’ gross pay and this remains unchanged. For this purpose a week’s pay is not capped at the statutory maximum (which is currently £430 per week which will rise to £450 from 1 February 2013).
The Government also plans to bring in legislation to make clear that fixed term contracts which expire will be excluded from obligations for collective redundancies consultation. There will also be new ACAS guidance released on key issues to address in collective redundancies consultation.
If you would like to talk through a situation you are dealing with, or if you need advice on any aspect of employment law, please contact any member of the Pure Employment Law team (01243 836840 or [email protected]).