A quarter of firms are unaware of redundancy consultation legalities

That’s according to ACAS, reports People Management magazine.

A YouGov survey last month, which polled more than 2,000 businesses found that 24% of companies admitted they were not aware of their legal responsibilities around consulting employees before redundancy. In fact, 27% said they would be telling staff via video calls or over the phone. Just 33% said they would be telling people in person. Whilst not ideal, this approach might be forgiven in the current climate as long as the selection process is transparent and balanced, communication is clear and the consultation process remains meaningful throughout. In short, the law needs be followed at all times to avoid potentially costly legal processes.

As the article reports, businesses may need to build extra time into the consultation process to allow for any logistical issues arising from telling people remotely rather than face to face, not forgetting that employees still have the right to be accompanied at redundancy outcome meetings. “Every employer should approach a redundancy process with compassion and treat everyone with dignity, respect and kindness,” said Rachel Suff, senior policy advisor for the employment relations at the CIPD.

Consultations needed to be meaningful, and as such employers should factor in the difficulties that conducting these processes over the phone or via video calls could present, agreed Joanne Frew, UK head of employment at DWF. “A message that can be delivered clearly face to face can get lost over electronic communication,” she said.

Frew added that consultation with individual employees was “fundamental to the fairness of any dismissal for redundancy” and collective consultation was required in any situation involving 20 or more redundancies. “The fact that 24 per cent of employers are unaware of this law is a concern.”

The figures followed several other worrying reports about the likely scale of redundancies over the coming weeks. Last month the Institute for Employment Studies (IES) warned the UK was likely to see around 450,000 redundancies this autumn alone. The former chief economist at Lloyds Bank, Trevor Williams, recently estimated unemployment in the UK could reach 13 per cent – equivalent to around 4.4 million people – by the end of the year.

Redundancies should always be a last resort but if they are necessary, then it’s important to seek advice and follow the law in this area.

Contact us today if you require any advice or support before making redundancies.

E: info@candidhr.co.uk

T: 0113 345 6944

Recent Posts

Baby Loss Awareness Week- An important change for 2027

Things You Thought You Knew… But Employment Law Has Moved On

October employment law changes : are you ready?