New guidance to support staff engagement during insolvencies

New guidance will be produced to help employers and insolvency practitioners manage staff engagement and redundancies during insolvency.

Following responses to a call for evidence, the government will publish guidance to help insolvency practitioners’ and employers consult with staff facing redundancy as a result of their employer’s insolvency.

When an employer is proposing to make more than 20 employees redundant within any 90-day period, they have a duty to consult with staff or their representatives over ways to mitigate the impact of the job losses.

The employer must also notify the Secretary of State in writing at least 30 days before the redundancies are made.