Employers with fewer than 10 employees are no longer required to elect representatives inform and consult employees.
A new provision is introduced so that micro businesses (employers with fewer than 10 employees at the time it is required to provide information about the transfer) may comply with their duty to inform and consult by dealing with each of the affected employees directly, rather than requiring these employees to elect representatives. This would only apply in circumstances where there are no existing appropriate representatives. This exception will only apply in respect of transfers which take place on or after 31 July 2014.
This is a welcome change for small business, removing the red tape of requiring them to carry out an election, when it would be quicker and more transparent to simply consult with employees directly.