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There is a legal requirement for employers to consult with their employees if they propose to make 20 or more staff redundant at one location over a period of 90 days or less.  Our advice is that even if the number of redundancies is less than 20 its worth going through a formal consultation exercise. 

In addition employers must give the DTI notice of such an exercise - for details see link opposite.

The requirement is for employers to consult with representatives of the workforce with a view to:

• Avoiding the dismissals.

• Reducing the number of employees to be dismissed.

• Mitigating the effects of dismissals.  

If the organisation recognises a trade union then the consultation should take place with the union representatives.  If not then representatives should be elected by the employees.  This may sound a bit cumbersome but a simple nomination and election exercise can easily be managed.  It has the distinct advantage of giving employees the feeling that they are being treated openly and fairly.

The process of consultation must be properly carried out, with a view to reaching agreement with the trade union or other elected employee representatives.  'Reaching agreement'  is an unhelpful legal term, in practice the employer needs to be able to demonstrate they presented the facts openly, listened to any arguments made and reacted reasonably to those arguments.

Employers subject to the consultation requirements must disclose in writing to the trade union or other elected employee representatives the following information:

• The reasons for the proposed redundancies

• The number and descriptions of those it is proposed to make redundant

• The total number of employees of any such description that work in the establishment in question

• The selection method and how the dismissals will be carried out (including the proposed timescale)

• The proposed method of calculating any non-statutory redundancy payments.  

In addition, the DTI recommend employers consult and, where appropriate, negotiate on:

• Relocation arrangements.

• Time off for employees to look for other work.

• Any retention of company benefits.

• The length of trial periods in a new job where re-training is involved.

• The effect on earnings if another job is accepted in preference to redundancy.

From an employers viewpoint it is important to make clear at the outset what issues will be included in the consultation.  There can also be a tendency for consultation to drag on in an undetermined way.  Again at the outset employers should clearly state the timescales confirm when they view consultation to be completed.