{"id":91941,"date":"2018-05-16T10:25:19","date_gmt":"2018-05-16T10:25:19","guid":{"rendered":"http:\/\/mostafa.openonline.co.uk\/?guid=6a0a1aabdcd46072f4f83235d7bf1194"},"modified":"2018-05-16T10:25:19","modified_gmt":"2018-05-16T10:25:19","slug":"news-story-new-guidance-to-support-staff-engagement-during-insolvencies","status":"publish","type":"post","link":"https:\/\/mostafa.openonline.co.uk\/?p=91941","title":{"rendered":"News story: New guidance to support staff engagement during insolvencies"},"content":{"rendered":"
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Following responses to a call for evidence, the government will publish guidance<\/a> to help insolvency practitioners\u2019 and employers consult with staff facing redundancy as a result of their employer\u2019s insolvency.<\/p>\n

When an employer is proposing to make more than 20 employees redundant within any 90-day period, they have a duty to consult with staff or their representatives over ways to mitigate the impact of the job losses.<\/p>\n

The employer must also notify the Secretary of State in writing at least 30 days before the redundancies are made.<\/p>\n

To better understand the difficulties employers face when proposing to make many people redundant in an insolvency process, the government launched a call for evidence in March 2015.<\/p>\n

Responses were received from a range of groups including lawyers, insolvency practitioners and trade unions and these were captured in a document published in November 2015.<\/p>\n

Respondents understood that legislation aims to encourage constructive engagement with employees, as well as ensuring the appropriate support mechanisms are available to staff losing their jobs.<\/p>\n

However, it was acknowledged that the legislation around collective redundancy consultation can be difficult to apply in a real-life insolvency situation where decisions need to be made quickly, there is little money available, options are limited and attention is focused on attempts to rescue the business.<\/p>\n

Additionally, this may be the first time employers have ever dealt with a collective redundancy situation, which can be daunting while navigating both insolvency and employment law, all while the business is in financial distress.<\/p>\n

In response, the government has approved a package of non-legislative measures to help insolvent employers and insolvency practitioners engage with staff when proposing large scale redundancies.<\/p>\n

New guidance will set out minimum expectations for insolvency practitioners to:<\/p>\n