The government has recently made an announcement that changes to employment legislation will include reducing the consultation period for large-scale redundancies from ninety to forty five days. The changes are suggested to "minimise uncertainty and boost flexibility".
The thinking behind this change in legislation is that companies making 100 people or more redundant would enhance "certainty and flexibility" for workers and employers, said ministers.
The government has listened to organisations and felt that there was a strong case for reducing the minimum consultation which is supported by strong evidence.
Employment relations minister Jo Swinson says “The process is usually completed well within the existing 90-day minimum period, which can cause unnecessary delays for restructuring, and make it difficult for those affected to get new jobs quickly.”
“Our reforms will strike an appropriate balance between making sure employees are engaged in decisions about their future, and allowing employers greater certainty and flexibility to take necessary steps to restructure.”
The proposals were supported by business groups and the CIPD who felt that the longer period of consultation had no benefit to companies and employees.
Mike Emmott, the CIPD’s employee relations adviser, said that the new 45-day consultation period would still offer reasonable statutory protection for employees.
The TUC was quick to criticise the decision by the government and said it would not boost employers' hiring confidence or support job creation. They felt the government have now made it easier to sack people.
The new legislation will be effective from April 2013.
Posted in Legislation
As the financial crisis continues to sweep across the globe, we are experiencing a shift in working patterns for the first time in decades..Businesses are now reviewing their internal working practices and making adjustments to ensure they stay afloat during 2013.
In previous recessions, companies would automatically make more drastic decisions such as job cuts and wage reductions. It is interesting and equally positive to see businesses being more creative by changing the way in which they work. This includes work sharing and therefore days have been reduced, duties shared to make sure jobs are kept and employees still have a role to play.
The immediate impact of these measures is in the salaries of the employees because they are having to work reduced hours and even part-time. The positive output is that they still have a job to go to and also companies can continue to operate until the economy finally changes.
The overall view amongst business leaders is that these creative measures actually stabilise the global economy, instead of making drastic decisions and eroding talent, cultures and employment.
The Business secretary Vince Cable, has applied pressure on search firms to demonstrate their placement of women by supplying gender data.
The imbalance in the UK is still a major concern and therefore, by presenting such data would highlight which companies are taking the gender equality seriously and are prepared to conform.
Vince Cable was clear in his statement which would provide the transparency the UK needs. “Headhunters have a crucial role to play in making sure there is a diverse pool of talent for business to choose from,” said Cable. “So we are urging them to fish in a bigger pond, to identify new talent and to shine a spotlight on the selection and appointments.”
Speaking at a recent City event, Cable urged many search companies to start creating development plans around talent to ensure there was a healthy pipeline of highly experienced female executives available over an continuous period. This would be expected to factored into their working practices.
The acceptance from business leaders to place gender equality at the top of their agenda has been recognised by many business leaders to increase the number of females on boards. This view has improved only very recently which is great starting point.
A recent report published by Cranfield School of Management found that women account for 17.4 per cent of FTSE 100 companies and 12 per cent of FTSE 250 board positions. Interestingly, over the past year, new appointments going to women in FTSE 100 companies rose to just under 45 per cent and 37 per cent in FTSE 250 businesses.
Posted in Legislation