UK businesses now have just two weeks left until new employment regulations come into force, which could revolutionise the way in which they consult and share information with their staff. The new regulations (The Information and Consultation of Employees Regulations 2004) come into force in the UK on 6 April 2005, and are the result of an EU Directive, designed to oblige employers to inform and consult their employees before taking commercial decisions that affect their employeesí employment.
Dawsons Solicitors, specialists in employment law, says the new rules mean if a company is considering cutting jobs, or is looking at mounting or accepting a takeover bid, all employees will need to be informed and consulted in advance. Initially, the new rules apply only to larger businesses, with at least 150 employees, but in 2007 this drops to a minimum of 100 employees and then, by April 2008, any UK business with 50 staff or more will need to comply. Any company found not to be complying with the regulations risks a fine of up to 75,000.
Richard Linskell, employment partner at Dawsons Solicitors, said, ìInitially the new rules will only affect larger businesses, and although some of these will already have in place some kind of mechanism for informing and consulting staff, employers will still need to ensure that their existing arrangements comply with the new rules and are approved by their employees. However, by 2008, the rules will apply to companies with at least 50 employees and so even medium-sized enterprises will be affected. Weíd advise all businesses to start looking at the new rules straightaway, if they havenít already done so. Otherwise, they could run the risk of landing a hefty fine.î
Countdown for UK businesses: New employee rights begin 6 April
Dawsons warns employers to prepare for new rules - or risk 75,000 fine
