New guidance to be issued on collective redundancy consultation


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The government has announced that it will publish new guidance to help insolvency practitioners and employers consult with staff facing redundancy as a result of their employer's insolvency.

This follows a call for evidence in March 2015 on how directors and insolvency practitioners comply with the requirement to consult employees about large scale redundancies. The guidance will set out minimum expectations for insolvency practitioners to:

Notify the government in advance of collective redundancy proposals. Existing guidance dealing with the purpose of notification will be updated, and the government will explore ways of reducing the burdens involved in submitting the form.

  • Comply with the requirement to consult when seeking to rescue or wind up a business.
  • Provide information on how to ensure legal compliance when electing employee representatives, in the absence of existing employee representatives.
  • The government will consider whether additional measures are necessary, such as a new Statement of Insolvency Practice.

This article is taken from HR Law - June 2018.

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