Even where there is no trade union in place and the employer may still have an obligation to collectively consult with its employees. Failure to do so can lead to hefty financial penalties and employment claims.
Even well-intentioned employers can fall foul of the rules because they do not allow sufficient time to ensure that all processes are followed correctly or because they make mistakes with their procedures.
Where there is a TUPE transfer an employer has an obligation to inform and in some circumstances consult with Employee Representatives. Where there are no Employee Representatives in place, then an employer may have the obligation to arrange elections for Employee Representatives to take place. Failure to comply with the obligations to inform and consult with employees on a TUPE transfer can result in an award of up to 90 days gross pay per employee.
If an employer proposes to dismiss as redundant 20 or more employees within 90 days at a single establishment, then an employer is obligated to collectively consult with the Employee Representatives. Where there are no Employee Representatives in place, an Employer should arrange elections. Failure to comply with these obligations entitles each affected employee to up to 90- days’ gross pay. It is also likely that a failure to properly consult would render any resultant redundancy dismissals unfair.
If you are an employer we can help you make sure that you follow the correct procedures to minimise the risks of claims and avoid disruption to the business.