As more and more employers have concluded that compulsory
redundancies are necessary to address declining business volumes
and market uncertainty, companies are considering their options
moving forward. A common question that is being addressed is
whether further rounds of redundancies is the appropriate way of
managing headcount – or is there a way to manage out
employees without further redundancies taking place? If so, is
there a benefit to the business in choosing this route, and how
will this impact on the business culture and employee
relations?
Collective consultation in relation to redundancies and other
collective dismissals – namely where the reason for
dismissal is not related to the individual employees concerned -
kicks in when an employer is considering in excess of 20
redundancies, at one establishment, within a 90 day period. The
burden of collective consultation in terms of cost, management time
and litigation risk is significant.
