Call for evidence on collective redundancies in insolvency situations

Citylink, a nationwide courier company, was placed into administration at 7pm on Christmas Eve 2014.  For many of the 2,727 employees and 1,000 contractors who worked for the company, they learned of the collapse and the risk of job losses from the media on Christmas Day. Following Citylink's failure to consult with its staff, a Parliamentary report has been published criticising the company's directors. The report found that although they knew of the company's serious financial problems, they did not consider the impact of their failure to consult with staff. Employers proposing 100 or more redundancies have to start collective redundancy consultation with staff representatives in good time, and at least 45 days before the first redundancy takes effect.

On the same day as the report was published, the Department for Business, Innovation and Skills issued a call for evidence inviting stakeholder comments on collective redundancy for employers facing insolvency on:

  • their understanding of the current requirements, their purpose and benefits;
  • factors that facilitate and/or inhibit effective consultation;
  • the role of directors and insolvency practitioners; and 
  • ensuring timely notification and effective consultation.  

The call for evidence closes on 12 June 2015.

Further details of the call for evidence, and how to respond

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Shared parental leave is a new type of family leave available to parents of babies due, or children placed for adoption, from 5 April 2015. Up to 50 weeks' of leave and 37 weeks' of statutory pay will be available and for the first time, eligible parents will be able to choose which parent takes leave, when the leave is taken, and even to take leave at the same time if they choose to do so. 

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