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Notification of Redundancy Bill

Notification of Redundancy Bill






Make provision with regard to notices of redundancy.                                                    

Be it enacted by the Queen’s most Excellent Majesty, by and with the advice and

consent of the Lords Spiritual and Temporal, and Commons, in this present

Parliament assembled, and by the authority of the same, as follows:—


Notification of redundancy by companies in administration


This section shall apply only where an administrator has been appointed under

Part II of the Insolvency Act 1986 (c. 45), as amended by the Enterprise Act 2002

(c. 40).


Notice of dismissal by reason of redundancy may only be given if the


administrator has consulted with the company’s employees about the

management of the company’s affairs, business and property at a meeting

called for that purpose, and considered any representations made by them.


No notice of dismissal by reason of redundancy shall be given until a period of

one month has elapsed since the meeting referred to in subsection (2) above.



It shall be an offence for an administrator—


not to consult with a company’s employees in accordance with

subsection (2); or


to issue a notice of dismissal by reason of redundancy in contravention

of subsection (3).



A person who is guilty of an offence under this Act is liable on summary

conviction to a fine not exceeding one-fifth of the statutory maximum.


In this section—

“administrator” has the meaning given in paragraph 1 of Schedule B1 to

the Insolvency Act 1986;


“meeting” includes an information and consultation meeting, whether

exceptional or otherwise, held in accordance with the Transnational

Information and Consultation Regulations 1999 (S.I. 1999/3323); and

“redundancy” has the meaning given in section 139 of the Employment

Rights Act 1996 (c. 18).


Bill 171 54/1

Notification of Redundancy Bill




Short title, commencement and extent


This Act may be cited as the Notification of Redundancy Act 2006.


This Act comes into force at the end of the period of two months beginning

with the day on which it is passed.


This Act extends to England and Wales and Scotland only.



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Revised 6 June 2006