Information and Consultation - Applying to you soon?

From April 2007 the Information and Consultation Regulations are about to apply to all employers with more than 100 staff. Next year they will apply to employers with over 50 staff. They have applied to employers with more than 150 staff since April 2005.

So what? Well, this is the next step in introducing the legislation that Brendan Barber, General Secretary of the TUC said was 'the most important piece of employment legislation in a generation'.

In a nutshell the Regulations give employees the right to be informed and consulted about the business they work for, including prospects for employment and substantial changes in work organisation or contractual relations.

So what issues will be subject to Information & Consultation?

Subjects might include profit and loss, sales performance, productivity, structure, divestments, market developments and strategic plans. Decisions likely to lead to substantial changes in work organisation could cover:

What is Consultation?

Consultation is about management providing sufficient information to employee representatives, allowing for employee representatives to consider the information and respond to management feedback on that opinion. On decisions that are likely to lead to substantial changes in work organisation, or contractual relations, consultation must be carried out 'with a view to reaching agreement'.

What to do next?

• Employers have the option of initiating the creation of consultation arrangements or deciding to do nothing until approached by 10% of their workforce.
• Setting up consultation arrangements requires the negotiation of an agreement with employee representatives. If no negotiated agreement can be reached the 'standard' Information and Consultation provisions will apply.

• There is a reasonable amount of scope as to the type of negotiated arrangements that can be achieved. Negotiated agreements will include who is covered, whether the same or different arrangements will exist in different parts of the organisation, how information and consultation will take place, when it will take place, what will be discussed, how confidential information will be handled, how disputes will be resolved, and how long the agreement will last. Key considerations are how the arrangements will work alongside the employer's current need to consult in areas such as redundancies and TUPE transfers
• Having to apply the 'standard' provisions is likely to be more restrictive than having an agreement which has been developed to meet the real needs of the organisation.
• There are strict timetables and standards applying to each part of the process of setting up and operating Information and Consultation arrangements if the process is started by employees. Employers who drag their feet or get it wrong will be liable to fines.
• Managers and employee representatives will need training to make any consultation arrangements effective.

Key Points for Employers

• If the Regulations apply to you, you should now be thinking about how you want to respond. At the very least you should be able to describe what you intend to do (which may be 'do nothing') and why.
• HR Advantage's team of senior consultants are employee relations specialists
• Take the chance to talk to Stuart, Mark or Campbell. Call 01494 435310 or email stuart@hradvantage.co.uk to get started.
• Book yourself an HR Advantage 'Information and Consultation Masterclass' - a tailored two to three hour structured introduction, positioning and planning session on how best to respond to the Regulations. Call Theresa on 01494 435310 for more information.
• Remember, research shows that organisations that involve employees in employment matters are likely to benefit through increased motivation and commitment.

February/March 2007