Employee Consultation

Are you keeping your employees involved?

Most organisations recognise the importance of keeping their employees informed about the company, how it is doing and what it’s strategy is. Doing this not only improves morale and motivation among the workforce but can lead to improved performance as people become clearer about what part they will play in the organisation’s success.

The government has recognised the importance of keeping employees informed and through the Information and Consultation of Employees Regulations 2004 gave employees the right, subject to certain conditions, to request that their employer sets up or changes arrangements to inform and consult them about issues in the organisation. The legislation doesn’t impose a set means by which employers need to consult with employees but gives the latter the right to request an information and consultation agreement. The good news for small businesses is that these regulations are flexible and allow them to set up an arrangement that best suits them and their employees.

Initially this legislation did not affect small businesses, but since 6 April 2008 all organisations with more than 50 employees are covered. It is therefore important for small businesses that are growing quickly to be aware that once they have over fifty employees they will be covered by the act.

For more information on the Consultation of Employees Regulations visit http://www.acas.org.uk/index.aspx?articleid=663