IoD welcomes collective redundancy changes

18 December 2012

Responding to the announcement today that the period required for consultation on Collective Redundancy will be reduced from 90 to 45 days, Alexander Ehmann, Head of Regulatory Policy at the Institute of Directors, said:

“This is good news and a welcome step in the right direction. Companies facing problems have to be able to restructure swiftly, and a 45 day consultation period brings the UK closer to a number of EU competitors. We would have preferred a move to a 30 day consultation period - the same as for smaller-scale redundancies - which would have made the law less complex. The important thing now is that guidance is given making it clear when a consultation is to begin and end.

“Removing those employees on expired fixed-term contracts from this legislation is welcome, as their original inclusion was a particularly egregious example of the unnecessary “gold-plating” of European legislation. The deregulatory principle demonstrated here could usefully be applied to other strands of employment law.”


Contacts for further comments or to arrange interviews:

Mark Wallace
Head of Media Relations
Institute of Directors, 116 Pall Mall, London SW1Y 5ED
+44 (0)20 7451 3263
+44 (0)7764 883 417  

Edwin Morgan
Media Relations Manager
Institute of Directors, 116 Pall Mall, London SW1Y 5ED
+44 (0)20 7451 3392
+44 (0)7814 386 243

Notes to editors

  • The Institute of Directors (IoD) was founded in 1903 and obtained a Royal Charter in 1906. The IoD is a non-party political organisation with approximately 38,000 members in the United Kingdom and overseas. Membership includes directors from right across the business spectrum – from media to manufacturing, e-business to the public and voluntary sectors. Members include CEOs of large corporations as well as entrepreneurial directors of start-up companies.
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