EMPLOYERS are accustomed to consulting employees in certain circumstances - for example where redundancies or changes to terms and conditions of employment are contemplated. Most, however, will not generally consult with employees on matters of business strategy and other, more general aspects of the business' performance.

The EC Information and Consultation Directive is due to be implemented by March 2005. This provides that those employing more than 50 will have to inform and consult employees on matters relating to recent and probable developments in the business' activities; the situation, structure and probable development of employment within the business, and decisions likely to lead to substantial changes in work organisation.

Employers will have to give information in such fashion and with such content as is appropriate to the matter in hand. In particular, employees' representatives are to be allowed sufficient time to prepare for consultation, which is to take place at an appropriate time, and in an appropriate manner.

It is to be conducted by the appropriate level of management and in such a way as to enable employees' representatives to meet the employer and receive responses to any opinions put forward. Although the detailed regulations are still some way off, a consultation document contains some draft regulations and sets out the Government's views on how the Directive should be implemented.

The stated aim is to avoid conflict with existing consultation arrangements by facilitating voluntary agreements, by allowing pre-existing agreements on information and consultation to continue, and by ensuring that arrangements agreed with the workforce cannot be overturned by a minority of employees. Developments are being closely monitored by trade unions.

- Stephen Elliott is a solicitor in the employment team of North-East law firm Ward Hadaway. He can be contacted on 0191-204 4000 or by email at stephen.elliott@wardhadaway.com

Published: 23/07/2003