Law Updates

European Consultation Directive

The new regulations, arising from the European Information and Consultation Directive, come into force on 6 April 2005 for undertakings with 150 or more employees.  They will be extended to include organisations with 100 or more employees by 2007 and 50 or more employees by 2008.

Employees will have the right to be informed and consulted about the organisation for which they work, covering matters such as possible changes to employment and issues affecting the organisation's activities and economic situation.  Part-time and temporary employees are counted as part of the workforce; those who are self-employed are not.

There will be provisions covering how staff are to be represented, how negotiations on representation are to be conducted and what happens if agreement is not reached.

Non-compliance with the regulations can lead to a fine of up to £75,000