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Posted by on in Redundancy
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Collective redundancy changes

Changes to collective redundancy rules have been announced by Employment Relations Minister, Jo Swinson.

Under the changes, the Government plans to:

  • reduce the current 90 day minimum period, before very large scale redundancies can take place, to 45 days,
  • legislate to make clear that fixed term contracts which have reached the end of their natural life are excluded from obligations for collective redundancies consultation, and
  • introduce new non-statutory Acas guidance to address a number of key issues affecting collective redundancies consultation.

Jo Swinson said:

“We have listened to stakeholders and there is a strong argument for shortening the minimum period which is backed up by hard evidence.

“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.

“Our reforms will strike an appropriate balance between making sure employees are engaged in decisions about their future and allowing employers greater certainty and flexibility to take necessary steps to restructure.”

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