The Information & Consultation of Employees Regulations 2004 ("the ICE Regulations") are to be applied to businesses on a sliding scale and are being brought into effect as follows:-

• From April 2005 the ICE Regulations have been in full effect for undertakings with 150 or more employees.
• From April 2007 the ICE Regulations have applied to all undertakings with 100 or more employees.
• From April 2008 the ICE Regulations will apply to all undertakings with 50 or more employees.

The term "undertaking" includes any legal entity 'carrying out an economic activity whether or not operating for gain. Companies, partnerships, public service organisations and charities are therefore subject to the ICE Regulations.

If employees of an undertaking wish to be consulted about relevant developments in the workplace then the ICE Regulations introduce a framework which can be used to force your business to enter into arrangements to allow this to happen.

An organisation which falls foul of the regulations could face a fine of GDP75,000.

There are 3 types of information and consultation agreement under the ICE Regulations these are:-

• Pre-existing agreement
• Negotiated agreement
• Standard provision

(which will apply in lieu of the parties having come to an acceptable agreement).

What must your business consult about?
With either a pre-existing agreement or a negotiated agreement the parties may decide upon the subject matter of the consultation.

However;
If you are subject to the standard provisions you will need to provide information and consult about:-

• The recent and probable development of your business' activities and economic situation (you will only need to provide information with respect to this provision);
• The situation, structure and probable development of employment within your business and any measures your business envisages, in particular, where there is a threat to employment;
• Any decision likely to lead to substantial changes in work organisation or in contractual relations.

Your business will therefore need to consult about decisions / plans relating to employment, training and development, equal opportunities, health and safety, merger and acquisitions, re-organisations, etc.

A pre-existing agreement is the least onerous arrangement for your business. It offers more flexibility over the content, timing and mechanism for providing information and consultation than the other types of agreements. It may therefore be a worthwhile exercise for your business to put together an agreement which complies with the criteria required for a "pre-existing agreement". To do so now could avoid the much more onerous standard provisions applying. This option is only available to organisations with less than 150 employees.

If you have any questions about the incorporation of the ICE Regulations please do not hesitate to contact tbi's Employment Team.

Contact:

Joan Casson
jcasson@tbi.law.co.uk
01740 646012

tbi
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Wynyard Park
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