Redundancy rule change announced

The plans revealed by employment relations minister Jo Swinson, will be in place by April 6, 2013, and are intended to make it easier for businesses to restructure and implement redundancy programmes.

Oliver McCann, partner in the employment team at Napthens solicitors, warned that the move did not mean businesses should see the change in regulation as a means of cutting corners or rushing through consultation, and said proper consultation should always be carried out.

He said: “Often a minimum 90 day consultation period can be very costly for a business, at a time when that business could well be in financial difficulty and needing to implement cost saving initiatives and a quick restructuring programme.

“However, there is the fear from employee relation groups that restructures could be rushed through without the chance to consider fully alternatives to avoid redundancies or reduce the number or mitigate the consequences of redundancies.