The Trade Union and Labour Relations (Consolidation) Act 1992 make it clear that all employers should give notice to the Department of Business Innovation and Skills in the form of a completed HR1 if they are making 20 or more employees redundant at one establishment (should they have multiple locations) within a timeframe of 90 days or less.
Failure to give notice and carry out the correct procedures is a criminal offence and could result in conviction for employers or a hefty fine, which from March 2015 is without limit.
The Act also instructs employers on their duty to offer consultation with employee representatives 30 days (minimum) before making 20 employees (or more) redundant. This goes up to a minimum of 45 days for employers making 100 or more redundancies.
Recently a number of high profile directors have been charged with criminal offences relating to a failure to follow these rules. Not following the rules set out in the Act around due consultation will likely result in severe penalties, such as the tribunal awarding the affected employees with up to 90 days actual pay per employee.
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