Directors Face Criminal Proceedings For Redundancy Notification Failures

Prosecutions are being brought for the first time against company directors for failings by their companies in following the correct procedures when dismissing redundant employees. 

Dealing with redundancy is complex, and it is well known that companies need to follow the correct procedures and act fairly in order to avoid claims by affected employees.  But it is perhaps less well known that companies can commit a criminal offence if they get things wrong and that company directors can also be prosecuted.

Where an employer proposes to dismiss as redundant 20 or more employees at one establishment within a period of 90 days or less, it must consult on the proposed redundancies with a recognised trade union or, where no trade union is recognised, with representatives of the affected employees and also notify the Redundancy Payments Service (part of the Department for Business, Innovation and Skills).  Failure to consult can lead to claims for "protective awards":