[Audio] The Information and Consultation Regulations explained

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From 6 April 2007, companies with between 100 and 149 staff will be required to share more company information with their employees under the Information and Consultation of Employee Regulations.

Under the Regulations, employees will have the right to be:

• informed about the company's economic situation;
• informed and consulted about employment prospects; and
• informed and consulted about decisions likely to lead to substantial changes in work organisation or contractual relations.

The Information and Consultation of Employees Regulations came into force on 6 April 2005. Employees in organisations with 150 or more employees have a right to be informed and consulted on a regular basis about issues in their organisation. Organisations with 100 or more employees will come within the scope of the legislation in April 2007, and with 50 or more in April 2008.

The requirements in the legislation do not apply automatically. At workplaces where there are no existing consultation arrangements employers can initiate the process themselves, or an employee request must be made by at least 10% of employees in the organisation (subject to a minimum of 15 employees and a maximum of 2,500 employees).

The law is designed to encourage employers, employees and their representatives to agree information and consultation arrangements that suit their particular circumstances – it does not spell out the subjects, method, timing or frequency of the arrangements that are allowed.

Rachel Farr of Taylor Wessing warns that employees are increasingly aware of their rights, and they can require employers to enter into agreements for information and consultation. In an audio interview with Workplace Law Network she explains exactly what the information and consultation regulations mean for employers, what they should be doing to comply, and how this is even more important in light of a recent case in which Macmillan failed to comply.

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