Consultation regulations extended to more firms

Firms employing 50 or more people must now comply with the Information and Consultation of Employees Regulations 2004.

The regulations are intended to encourage employers to consult with employees and their representatives. Employees are entitled to be informed about such matters as the company's financial position and changes which would have a substantial impact on work arrangements or contractual terms.

There is no specific requirement to negotiate an Information and Consultation (I&C) agreement unless at least 10% of employees - subject to a minimum of 15 employees - formally request you to do so. However, many firms may wish to do so in the interests of good staff relations.

The agreement must set out the circumstances in which you will inform and consult your employees and it must include all staff.

When the regulations were first introduced they only affected companies employing more than 150 people. Now, since 6th April this year, they affect firms with 50 or more staff.