Information & Consultation Regulations
Tuesday, April 15th, 2008As an employer you need to communicate with your employees to exchange views and ideas, and to issue and receive instructions and delegation. All this information sharing is critical to the success of your business, employee morale and engagement. However legal obligations to inform and consult formally have now been extended to include smaller organisations.
From 6th April 2008, the regulations, which came into force initially in 2005, for organisations with more than 150 employees, have now been extended to include organisations with 50 or more employees.
The definition of your obligation to inform and consult is that you should tell staff of what is planned (inform) and to listen and take into account their views when deciding what to do going forward in the business (consult).
The regulations give employees, of organisations with 50 or more employees, the right to request that their employer sets up new arrangements to inform and consult them about issues within the organisation. Additionally, if 40% of the workforce ask, to change the existing arrangements, then they must be changed.
For you as an employer, it now means that employees can request formally in writing an information and consultation agreement if at least 10% of employees, (with a minimum 15) agree. The onus is then on the employer to allow the employees to elect a representative for negotiations, which can take up to 6 months.
Upon receiving a request from the workforce, employers must make necessary provisions for the appointment of an employee representative within 3 months. The regulations allow for employers to agree arrangements to be tailored to the companies individual circumstances.
The agreement must:
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- set out the circumstances in which you will inform and consult your staff
- provide for direct consultation with employees or with their appointed representatives
- include all your employees in negotiations
- be approved by your employees and their representatives
- be in writing, dated and signed by or on behalf of the employer
The following details areas of information consultation:
(i) the recent and probable development of the undertaking’s activities and economic situation of the organisation The purpose of this information is to help representatives understand the context in which decisions affecting employment, work organisation and employees’ contractual relations are made;
Information and consultation is based on:
(ii) the situation, structure and probable development of employment within the organisation and, in particular, on any anticipatory measures envisaged where there is a threat to employment within the business.
Information and consultation with a view to reaching agreement on:
(iii) decisions likely to lead to substantial changes in work organisation or in contractual relations. This will include decisions on collective redundancies/business transfers - areas that are already covered by existing legal obligations to consult
For more information see
http://www.berr.gov.uk/employment/employment-legislation/ice/page37924.html
http://www.direct.gov.uk/en/Employment/Employees/ResolvingWorkplaceDisputes/DG_10028095