Business: Redundancy

(asked on 9th May 2024) - View Source

Question to the Department for Business and Trade:

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.


Answered by
Kevin Hollinrake Portrait
Kevin Hollinrake
Shadow Secretary of State for Levelling Up, Housing and Communities
This question was answered on 17th May 2024

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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