Employee Information and Consultation Regulations

Information & Consultation Regulations have been recently been issued which are due to come into force from April 2005. As a result many UK companies will have to set up domestic works councils and inform and consult employees about a wide range of business issues.

The Regulations will apply to companies with:-

• 150+ employees from April 2005;
• 100+ employees from April 2007; and
• 50+ employees from April 2008.

The regulations represent a radical shift in the way UK companies currently practice employee consultation. Although companies must currently consult employees when considering large scale redundancies or business transfers they will now be under an obligation to consult staff on an ongoing basis. Below is a brief summary of the new rights, and employers who will be affected should be advised to begin thinking of suitable responses to these regulations now.

When will a company have to negotiate an Information and Consultation agreement with the employees?

• Upon receipt of a valid employee request

What does an employer have to do upon receiving a request?

• Initiate negotiations for an agreement within three months of receiving a request, unless there is a valid pre-existing agreement already in place. Failing this the standard Information and Consultation provisions will apply.

If the standard Information and Consultation provisions apply then employee representatives are to be elected and the employer must inform and consult in the way set out in the Regulations, i.e. provide the employees with:

• Information on any recent and probable development of the companies activities and economic situation.
• Information and consultation on the current situation and probable development of all employment within the company.
• Information and consultation with a view to reaching an agreement on any decisions which may lead to a substantial change in employment in the company or contractual relations.