Workplace expert Acas has today published new guidance to help employers handle collective redundancies.
A collective redundancy is when an employer proposes to make 20 or more employees redundant within 90 days. This can arise if an employer needs to: close or move all or part of their business; make cost savings due to a change in customer demand or an efficiency drive; or reorganise the way their business is run. On 6 April new government legislation will came into effect, and which applies to employers proposing 100 or more redundancies. A key change is that employers must start consultation at least 45 days before any dismissals can take effect. This has been reduced from 90 days.
The new Acas guidance will help employers understand their legal obligations and sets out the principles and behaviours behind a good quality consultation to help employers manage collective redundancies more effectively.
Acas Chair Ed Sweeney said: “This new guidance draws on our knowledge, expertise and experience in helping to resolve the thousands of workplace disputes every year. “In 2011/12 11 per cent of Acas’ collective conciliation cases related to redundancies and of the 925,000 calls to our helpline, around 20 per cent were seeking information on redundancy-related situations. “This guide will help employers and employees understand the recent changes and the new laws around collective redundancies with top tips on how to handle them.” Acas advises that for organisations to manage collective redundancies well and help ensure their future success, they need to have: good working relationships with employees, unions and employee representatives ; agreed procedures for handling redundancies; an organisational culture that recognises the emotional as well as economic impact of change; and a plan for restructuring and looking to the future. The new Acas guidance “How to manage collective redundancies” can be downloaded from the Acas website from the 6 April 2013.