Since April 2005, those who work for employers with 150 or more employees have had the right, under the Information and Consultation of Employees Regulations 2004, to be provided with information and to be consulted on major business decisions which affect them at work, with a view to reaching agreement on decisions likely to lead to substantial changes in work organisation or employers' contractual relations with their employees.
Employers are reminded that the Regulations are extended to cover undertakings with 100 or more employees as of 6 April 2007. The legislation applies to anyone carrying out an economic activity, whether it is a business, a school, a public sector body or a charity. The rules will apply to employers with 50 or more employees from April 2008.
The legislation does allow employers the flexibility to agree consultation arrangements with their employees which suit the individual circumstances of the business. Pre-existing arrangements that are supported by both employees and the employer will be allowed to continue.
Where there are no existing arrangements for informing and consulting employees, the onus is on employees to ask for them to be put in place. Employers will be obliged to comply with the request if it is supported by at least 10 per cent of the workforce.
Recently, the Central Arbitration Committee (CAC) found that Macmillan Publishers Ltd. was wrong to ignore a request from employees for information and consultation arrangements. The company argued that it already had adequate arrangements in place but the CAC disagreed and ordered it to arrange for the holding of a ballot of its employees to elect information and consultation representatives.
If you wish to initiate proceedings to negotiate an agreement to inform and consult your employees or would like further information on how the legislation operates, please contact Dean Parnell on 0121 698 2200 or email d.parnell@sydneymitchell.co.uk
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