The announcement responds to a consultation launched in June and to calls for improvements to the way collective redundancies rules operate and for the processes involved to be made easier to understand. It also forms part of the Government’s commitment to review employment law to support business and concentrate on growth.
Employment Relations Minister, Jo Swinson, stressed that fixed-term contracts which have reached the end of their natural life are excluded from obligations for collective redundancies consultation.
In addition, Whitehall introduced new non-statutory Acas guidance to address a number of key issues affecting collective redundancies consultation.
Swinson said: “The UK has a labour market that is flexible, efficient and fair but some of our laws need reform to respond to an ever changing employment landscape.
“We want to improve the quality of consultations by making sure that there are tools available to help employers manage this process fairly and successfully to deliver the best possible outcomes for all parties.
“The process is usually completed well within the existing 90-day minimum period, which can cause unnecessary delays for restructuring, and make it difficult for those affected to get new jobs quickly.”
Swinson added the reforms will “strike an appropriate balance” between making sure employees are adequately consulted and allowing employers greater flexibility to take necessary steps to restructure.
The changes will be made through secondary legislation. Draft regulations will be laid in the New Year and the changes are expected to be made by 6 April 2013.
