21/01/2

Commenting on the proposals to reform collective redundancy prcedures announced by Norman Lamb today, Dr Adam Marshall, Director of Policy at the British Chambers of Commerce (BCC), said:

“As they stand, the UK’s redundancy rules are outdated and damaging to UK firms. Consulting for a quarter of a year to change the direction of a business is unnecessary and out of step with the modern world. Instead of thresholds and processes, the rules should encourage firms to focus on quality consultation with staff, and enable fair decisions in a swift timeframe.  A shorter compulsory period of 45 days would allow quicker decision-making where the survival of the business could be at risk, such as following the loss of a major contract.

“Redundancy is always a last resort, but is sometimes necessary to save other jobs or prevent the business from failing. When tough decisions are necessary, businesses must be assured that the redundancy consultation process can be carried out efficiently, rather than being drawn out in a way that increases uncertainty for employers and employees alike.”

Ends

Notes to editors:

For more information on the proposals, click here.

The British Chambers of Commerce (BCC) is the national voice of local business.

The BCC sits at the heart of a powerful nationwide network of Accredited Chambers of Commerce, serving over 100,000 businesses across the UK, which employ over five million people. For more information visit: www.britishchambers.org.uk

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