Employee Consultation
Employee consultation, or simply “consultation” as it is often referred to, is something that should happen within a business for a number of different reasons.
What is employee consultation?
Employee consultation can have slightly different meanings depending on particular circumstances and so it is important to establish the type of consultation required before getting started. As a general principle though ACAS provide a solid definition of employee consultation as being, “when an employer talks and listens to employees or workers and any trade union or other relevant employee representatives about organisational issues and changes which affect them”. The key to employee consultation is that it is a two-way process. During consultation, opinions and concerns are expressed and listened to, information flows between the parties involved and meaningful dialogue takes place so that when a decision is finally made it is has taken account of as many factors as possible and is fully informed.
When should employee consultation take place?
Consultation is necessary in a variety of different business situations, let’s take a look.
Good practice consultation: Some companies will consult with their employees as a matter of good practice and to foster positive working relationships and employee engagement. Depending on the size of the company this consultation might take place directly with each individual, it may be done by team or in larger organisations there could also be a work council, staff forum or other body which meets regularly and is made up of a selection of senior staff and elected employee representatives. Good practice consultation might include reviewing new policies, employee benefits or even building renovations so that staff have an input and are included in the decision making process.
Legally required consultation: Consultation is legally required in specific circumstances and there are set obligations for a company to follow in order for the consultation to be a full, fair and proper process. Employers must consult their staff regarding any changes which may substantially affect their health and safety. This could include things like changes to procedures, new types of work, risk assessments or equipment. The Health and Safety Executive website provides a wealth of information and resources on this subject and is a great point of reference. Consultation is also required when changing terms and conditions in a contract, unless that contract contains a flexibility clause but even then it is good practice. The contractual changes may relate to working hours, location, holiday entitlement or salary. Even if the changes are going to be in the employee’s favour you still need to consult and gain their consent to the change. If a redundancy situation arises then employers must consult with employees. Depending on the number of redundancies certain criteria will apply but even if you are making just one role redundant you still need to consult in a meaningful way and ensure that the correct procedure is followed. When a business is being bought or sold, or when a contract is being taken over by a new provider then it is highly likely that the Transfer of Undertakings (Protection of Employment) Regulations 2006, more commonly known as TUPE, will apply. Again this is a case when employers must enter into consultation. Employees should be consulted about the transfer, when it’s happening and why, how it will impact on them and any reorganisation or restructuring planned. If an employer is considering making at least 20 employees at one establishment redundant within a 90-day period, then something called collective consultation also comes into play. Collective consultation is a legally required part of consultation and takes place between the employer and employee representatives, sometimes this will be a recognised trade union. Collective consultation doesn’t replace individual consultation though and usually takes place at the outset of the process although it can continue alongside individual consultation.
The basics of consultation
Once you have established the type of consultation you are entering into it is important to understand the basics of conducting consultation. You should meet with the employees or their representatives, or both depending on the process, and explain the proposed changes and gather their thoughts so you have a full picture of any concerns, considerations or challenges regarding the proposed change. Look at alternative options, explore employee suggestions and remain open minded so that the consultation is meaningful and not a fait accompli. Consultation should be a two-way process. If there is no legal requirement to consult for a specific period of time, then establish at the start how long you intend the consultation process to last. If your business doesn’t already have one then you may want to put a consultation policy in place to set out how you will handle consultations. Depending on the makeup of your team it may also be worthwhile to provide training for managers and any elected employee representatives on handling consultations so that they understand how the process works and can enter into it prepared and equipped with the necessary skills for discussions to be constructive and meaningful.
Do you have any questions about todays blog, need help in becoming legally compliant with contracts/policies or can we support you in taking away any people pains to give you peace of mind?
If you answered yes to any of the above, just give us a call at CUBE HR on 01282 678321, or book in a FREE 30 Minute HR Health Check here FREE HR Health Check and we’ll happily give your business a full HR overview with our personal recommendations absolutely FREE!
Why not also check out our blog on a similar topic Contract Variation – 3 Things You Need to Know
We also have a YouTube channel with loads of handy videos outlining various HR related scenarios.
