Overview

This bill strengthens worker protections against unfair dismissal and re-engagement on worse terms. It mandates employer consultations and information disclosure before major workplace changes affecting 15 or more employees, providing avenues for dispute resolution and potential compensation for affected workers. It also restricts employers from unilaterally changing contracts to the detriment of employees.

Description

The bill amends existing employment and trade union laws. Key changes include:

• Mandatory Consultation: Employers with 50 or more employees must consult with employee representatives before dismissing 15 or more employees (for reasons other than conduct or capability) or making substantial changes to work organisation or contracts affecting 15 or more employees. Employers must disclose relevant information to representatives.
• Information Disclosure: Employers must provide representatives with all relevant information needed for meaningful consultation, unless disclosure would seriously harm the business. The Central Arbitration Committee (CAC) can order disclosure if disputes arise.
• Dispute Resolution: If employers fail to consult or disclose information, employee representatives can complain to the CAC. ACAS will attempt conciliation before the CAC makes a declaration. The CAC can order the employer to take remedial steps and an injunction can be sought from the court.
• Protection Against Unfavourable Changes: Any contract variation obtained under threat of dismissal or unilaterally imposed that is less favourable to the employee is void, unless the employer followed the consultation and disclosure requirements.
• Unfair Dismissal: The bill strengthens the protection against unfair dismissal for employees who refuse unfavourable contract variations or where employers fail to comply with the new consultation requirements. Reinstatement or re-engagement orders are easier to enforce with the caveat that it does not cause insolvency for the employer.
• Notification to the Secretary of State: Employers must notify the Secretary of State of potential redundancies or major contract changes affecting 50 or more employees, providing details of consultations. Failure to do so is a criminal offence.

Government Spending

The bill's impact on government spending is not explicitly stated. However, there will likely be some administrative costs associated with enforcing the new requirements, and potential costs related to CAC and employment tribunal processes. The exact figures are unavailable.

Groups Affected

• Employers: Larger employers (50+ employees) face new obligations regarding consultation, information disclosure, and notification to the Secretary of State. Non-compliance could lead to fines and legal challenges.
• Employees: Employees in larger workplaces gain stronger protections against unfair dismissal and unfavorable contract changes. They have clearer avenues for redress if employers fail to comply with the new requirements.
• Trade Unions: Trade unions will play a crucial role in representing employees during consultations and in pursuing complaints, strengthening their influence in workplace negotiations.
• Central Arbitration Committee (CAC): The CAC will have increased workload due to the handling of complaints.
• Employment Tribunals: The number of cases brought before employment tribunals may increase due to the bill's provisions.

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