Business: Redundancy

Department for Business and Trade written question – answered at on 17 May 2024.

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Photo of Fabian Hamilton Fabian Hamilton Labour, Leeds North East

To ask the Secretary of State for Business and Trade, what steps his Department is taking to help tackle companies that make employees redundant without (a) giving notice and (b) following a consultation process.

Photo of Kevin Hollinrake Kevin Hollinrake Minister of State (Department for Business and Trade)

While we recognise that tough decisions such as redundancies remain a commercial matter, it’s important that employees are treated fairly and that correct process is followed.

The Government has a robust package of measures to address non-compliance including:

  • potential disciplinary action for officeholders who fail to consult following appointment on insolvency,
  • a financial penalty on employers who fail to engage with employees and;
  • potential prosecution for failure to notify the relevant competent authority when proposing redundancies.

Whether an employer met consultation requirements for collective redundancy would be a matter for an employment tribunal to decide, having heard detailed evidence on the facts of the case.

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No4 people think not

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