Shorter consultations on redundancies will help firms remain flexible

18th December 2012

Today, the government has announced that the 90-day consultation period before large-scale redundancies can take place is to be cut from 90 to 45 days.

Commenting, Dr Adam Marshall, Director of Policy at the British Chambers of Commerce (BCC), said: -In the 21st century, requiring a business to spend a quarter of a year consulting on how to restructure is unnecessary, frustrating and potentially disastrous. The new rules will encourage firms to focus on quality consultation with staff and enable timely but fair decisions. This greater flexibility to change direction more swiftly reduces uncertainty for employees and customers and may help to prevent further job losses where the survival of the business could be at risk. -Businesses invest hugely when recruiting and training staff so redundancy is always a last resort. However, sometimes tough decisions are necessary, such as when a major contract is lost. In such cases, businesses need to know they can respond efficiently, and not have their hands tied by unnecessarily drawn-out processes.