Small firms with 50 or more employees will have to comply with staff consultation regulations for the first time, under new legal changes coming into force next month.

 

From April 6 2008 employees will have the right to be informed and consulted about business issues within their company.

 

According to Martin Edwards, head of employment law at legal firm Mace & Jones, the new legislation will apply if at least 10% (15 employees in a company with between 50 and 99) of staff make a written request for information and consultation arrangements.

 

Companies that breach the new regulations risk being taken to the Central Arbitration Committee and the Employment Appeal Tribunal, where they could be fined up to £75,000.

 

“It is absolutely vital firms are ready and prepared for this legislation,” asserted Edwards.

 

© Crimson Business Ltd. 2008