Since 1st March 1996, the law has required employers to consult with "appropriate representatives" of employees regardless of whether a trade union is involved before making collective redundancies and/or before a sale or other disposal of an employing business (Collective Redundancies and Transfer of Undertakings (Protection of Employment) (Amendment) Regulations 1995, SI 1995/2587, amending TULRCA 1992, s.188 and the TUPE regulations 2006 (SI 2006/246) reg 13.
Previously employers' statutory duties to consult in collective redundancy and transfer of business cases only arose if employees involved were members of a trade union (see Redundancy/consultation and Transfer of Business or Undertaking/consultation ).
An important change (brought into effect on 1st November 1999 by the Collective Redundancies and Transfer of Undertakings (Protection of Employment) (Amendment) Regulations 1999, SI 1999/1925 - see Redundancy/consultation ) is to ensure that where there is a recognised trade union it must be consulted (see see reg 3(3) of SI 1999/1925 which sets out a new version of TULRCA 1992 s.188(1B)). Previously, under 1995 regulations, the definition of "appropriate representatives" was drawn so as to mean employers had the option to consult either a recognised trade union or employee representatives. From 1st November 1999 that option is removed. Only if there is no recognised trade union is it sufficient for the employer to consult with other employee representatives.
As a separate matter, regulations made to implement the National Information and Consultation Directive 2002/14/EC of 11th March 2002 now give employees of larger (50 plus employees) companies the legal right to be consulted on all major management decisions (see notes at Consultation with employees/Information and Consultation regulations 2004 ).