Business minister Jo Swinson has launched a call for evidence and recommendations of how to improve information sharing and consultation between employers and their staff when a company is faced with insolvency.
The Insolvency Service is currently speaking to industry professionals and the public about the challenges of communicating potential redundancies in cases of insolvency, and how to make the process more effective to improve the outcomes for all parties.
Jo Swinson said:
“Constructive engagement with employees is important for business at all times, but especially when facing situations such as insolvency. The purpose of this call for evidence is to look at consultation with employees where a business is facing insolvency or has moved into an insolvency process.”
“Whilst our current system generally works well and is effectively complied with and its benefits agreed upon, we want to explore in more detail how consultation operates in these situations and what are the challenges and best approaches.”
The business minister met with key stakeholders last month to hear how the industry perceived the current legislation, what challenges they were facing, and what support was available for both employers and workers facing redundancy.
The call for evidence, which will run for 12 weeks, is asking views on:
- understanding of the current requirements, their purpose and benefits
- factors that facilitate or inhibit effective consultation
- ensuring timely notification and effective consultation