Govt to cut redundancy term
The Government will reduce the consultation period for mass redundancies from 90 days to 45, it was announced today.
Ministers have also decided to exclude fixed term contracts from rules on redundancy consultation.
Business Minister Jo Swinson said the move would "allow businesses to restructure more effectively, and give them flexibility to respond to changing market conditions".
But Labour and the TUC hit out at the idea.
TUC general secretary Brendan Barber said: "The idea that an employer will change their mind about taking someone on because the statutory redundancy consultation period has been reduced from 90 to 45 days is close to absurd."
Shadow Treasury Minister Cathy Jamieson MP told BBC News: "I am surprised that the Business Minister seems to feel that actually cutting workers rights is the appropriate way to move forward... There are other ways that small businesses could be supported."
The CBI was more supportive of the plan. Director Neil Carberry said: "The CBI has long called for a simplification and streamlining of the collective redundancy rules and today’s announcement is a welcome move in that direction.
"The priority for businesses is meaningful consultation. A shorter consultation period will reduce uncertainty for staff and allow businesses to focus on the future more quickly."