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Law firms should act now to communicate and consult with staff over business issues, it was claimed this week.
Speaking following the release of the final version of the regulations on information and consultations, together with a draft Department of Trade & Industry guide to them, Deborah Hely, an employment partner in the Manchester office of Beachcroft Wansbroughs, said firms would be well advised to take action before the regulations come into force in March 2005.
The regulations will require employers in firms of more than 150 staff to inform and in some cases consult employees on a wide range of business issues if 10% of the employees make a request for consultation.
The issues include the financial state of the business, business reorganisation, takeovers, mergers, potential redundancies, outsourcing, expansion plans and staff changes.
Firms of between 100 and 150 staff have until March 2007 to comply, while those with between 50 and 100 have a further year.
Ms Hely said many employers are entering into voluntary arrangements now so as to avoid being forced to consult on specific issues as a result of the regulations.
Failure to consult could lead to a fine of up to £75,000 and the embarrassment of having the Central Arbitration Council enforce compliance.
Voluntary agreements can only be overturned if 40% of the workforce demands it. Ms Hely suggested that it may be hard for staff who are spread out over several offices to organise themselves sufficiently to hit the 40% mark.
'A lot of solicitors already have some form of communication with their staff because they know it's important to get their views,' she said. Beachcrofts' executive committee, for example, sends out a monthly briefing to staff and is planning to set up a joint council before the end of the year.
She said it may be smaller old-fashioned practices, which can often have more secretive partnerships, which will face the greatest challenges as a result of the regulations.
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