Directors Face Criminal Proceedings For Failing to Comply
It has been reported that three former directors of the now-defunct parcel-delivery business, City Link, are facing criminal proceedings for failing to notify the Secretary of State of proposals to make large scale redundancies at the firm.
Implications
Under the Trade Union and Labour Relations (Consolidation) Act 1992 (“TULRCA”), employers are obliged to notify the Secretary of State, in writing, where they are proposing to dismiss as redundant 20 or more employees at one establishment within a period of 90 days or less. The amount of notice required depends on the number of proposed dismissals. In addition, employers must also consult on their proposals with representatives of the employees affected by the proposed dismissals, or measures taken in connection with those dismissals.
The purpose of the advance notification is to enable the Government to assist employees facing redundancy. Failure to comply with the statutory notice requirements is a criminal offence and can result in prosecution and a fine, on summary conviction, for both the employer and its officers. The fine is now unlimited. Given this and the recent spate of prosecutions, employers and their management teams may ignore this obligation at their peril. It is evident that the redundant employees may not be the only ones facing personal and professional consequences following mass redundancies.
Use the Redundancy guidance and letters on our HR toolkit to stay the right side of the law.
If you would like to see a demo of our toolkit then please us a call to discuss your options. We’re a friendly bunch and really keen to make a difference to your business by finding a solution that works for you and your business so call us on 01473 360160.
“Essential HR advice at your fingertips”
“In summary, MAD HR have made essential HR advice incredibly convenient and accessible and would recommend outsourcing if you don't have these skills in house.” Read the full review
The content of this article is for general information only. It is not, and should not be taken as, legal advice. If you require any further information in relation to this article please contact us.
There may be occasions where the articles contain links to external websites. We have no control over the nature, content and availability of those sites. The inclusion of such links does imply a recommendation or endorse the views expressed within them.