Information and Consultation Regulations - Guidance Published
What's Happened?12 Jan 05
The Government has published guidance on the Information and Consultation Regulations 2004, which give employees in larger undertakings the right to be informed and consulted about issues affecting the business they work for.
With effect from 6 April 2005, the Regulations will apply to undertakings carrying out an economic activity employing 150 or more employees in the UK that have their registered or head office, or principal place of business in Great Britain.
Transitional provisions will apply the Regulations to undertakings employing 100 or more employees from 6 April 2007 and to undertakings employing 50 or more employees from 6 April 2008.
Where the Regulations apply, employers can be required to negotiate an Information & Consultation Agreement, or to have a Standard agreement imposed, appointing nominated representatives of the employees.
Thereafter an employer will require to provide information to these representatives in respect of the recent and probable development of the undertaking’s activities and economic situation.
The employer must also provide information and consult in respect of:
(i) the situation, structure and probable development of employment within the undertaking and on any anticipatory measures envisaged, in particular, where there is a threat to employment within the undertaking; and
(ii) decisions likely to lead to substantial changes in work organisation or in contractual relations.
What Do I Need To Do?
- If your organisation employs 150 or more employees within the United Kingdom (even if the total is an aggregate of a number of individual operations) you will be subject to the Regulations from 6 April 2005. If you have not already done so, you should take immediate steps to review your current arrangements for consultation with the workforce eg. workplace agreement, collective agreement with a trade union.
- The Regulations will only apply if formal action is taken by either the employer or the employees. You should consider whether it is in the best interests of your business to instigate the formal procedure voluntarily.
- Even if the Regulations are unlikely to apply to your organisation until a future date, you should still consider your options now, as an agreement in advance of the operation of the Regulations will eliminate the risk of financial penalties for non-compliance in the future.
