Welcome to York & District Citizens Advice Bureau's monthly advice column. Each month we will attempt to answer questions on topical/interesting subjects. As redundancy has been in the news recently, we give a few pointers as to how any employer considering making redundancies should act.
Consultation over proposed redundancies
AN EMPLOYER must consult with a trade union or employee representatives in circumstances where it is proposed to dismiss 20 or more employees at one place of work over a period of 90 days or less.
This consultation must take place with a view to reaching agreement with the appropriate representatives and must include discussion about:
Ways of avoiding redundancies
Reducing the numbers to be dismissed
Mitigating the consequences of any redundancies.
Employers also have a duty to act fairly and reasonably in handling redundancies and informing and consulting affected employees individually, regardless of the number of dismissals.
Information about proposed redundancies
TO ENSURE employee representatives can play a useful part in the consultation process over proposed redundancies, the employer must disclose certain information in writing including:
Reasons for the proposed redundancies
Numbers and descriptions of those affected
Proposed method of selecting the employees who may be dismissed
Proposed method of carrying out the dismissals, taking account of any agreed procedure, including the period over which the dismissals are to take effect
How redundancy payments, other than the legal minimum, will be calculated.
Information and consultation in Europe
EMPLOYEES have certain rights to information and consultation across Europe as part of the Transnational Information and Consultation of Employees Regulations 1999.
Companies with at least 1,000 employees in European Community member states and with at least 150 employees in two or more member states must have a European Works Council (EWC) or an equivalent procedure. The purpose of the EWC is to provide "transitional information and consultation" for the entire workforce.
These regulations allow employees reasonable time off with pay to perform their functions as a member of a special negotiating body or an EWC, as an information and consultation representative, or as a candidate in an election to be a member or representative.
Protective awards for failure by an employer to consult
IN CASES where employers have failed to consult with employee representatives over proposed redundancies an employment tribunal can make a "protective award".
The employer is required to pay employees covered by a protective award their normal week's pay for each week of a specified period, known as the protected period, regardless of whether or not they are still working.
To be covered by an award, employees must:
Belong to a group specified in the award
Be employees whom the employer plans to dismiss or has already dismissed as redundant, and
Be employees in whose case the employer has failed to comply with the information and consultation requirements.
Consultation over transfer of business
EMPLOYEES have the right to be consulted when a business or undertaking, or part of one, is transferred to a new employer - whether employed by the new or previous employers.
An employer must tell a trade union or employee representative:
That the transfer is going to take place, approximately when, and why
The legal, economic and social implications of the transfer for the affected employees
Whether the employer envisages taking any action (reorganisation, for example) in connection with the transfer which will affect the employees and, if so, what action is envisaged.
If action is envisaged which will affect employees, the employer must consult their representatives. The consultation must be undertaken with a view to seeking agreement.
If you have a query about this, or any other subject please contact us at 3 Blossom Street, York, YO24 1AU, phone 0870 1264850, fax 01904 620571, or email admin@yorkcab.org.uk. You can get details of all of our services on our website at www.yorkcab.org.uk
York & District CAB is a registered charity (No 509600) offering free impartial, independent and confidential advice.
Updated: 09:56 Thursday, May 13, 2004
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