Employee Participation
On 6 April 2008, the Information and Consultation of Employee Regulations were extended to organisations employing at least fifty employees. As a result, employers in the UK with approaching fifty employees would be wise to consider their obligations under the Regulations. The main stumbling-block to increased employee participation in decisions by management which affect their day-to-day working life could be described as a cultural one. Having said this, the attempt to introduce a more co-operative participation system has the potential to be very beneficial for both employees and management and to oil the wheels of everyday transactions.
The UK already has a number of employee participation systems in place, but these tend to be in relation to specific issues as and when they arise, for example, on transfers of a business. Whilst consultation on these matters is generally via recognised trade unions, consultation can also be undertaken with representatives elected for the purpose or under circumstances where no representatives have been able to be elected, with employees themselves. Consultation is generally accepted to be more meaningful and effective for employees when undertaken with representatives, and still more so, when those representatives are trained and experienced.
In contrast, the information and consultation arrangements which may be set-up under the new regulations are designed to be general and permanent. Their implementation is only triggered by a request from a minimum number of employees. Before receiving any such requests, employers can negotiate with employees to introduce an information and consultation agreement which will be unaffected by the prescriptive requirements of the regulations as to content and timing. Such agreements have considerable latitude and may provide for direct information and consultation of employees, rather than by representatives.
We suggest that it is preferable to embrace the notion of employee participation and to set-up arrangements by way of a negotiated agreement under the regulations as soon as the threshold of fifty employees is reached or close to being reached. Rather than fearing the involvement of employees it should be viewed as a way of involving employees in the life of the enterprise and giving them a stake in ensuring its welfare and success. By embracing the opportunity to involve employees, employers have an opportunity to enhance employee morale and to ease the burden of ad hoc information and consultation obligations increasingly imposed on small to medium sized enterprises.
Kate Wyatt is an Employment Law Assistant in Miller Hendry’s Perth office on 01738 637311
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