Its time to spill your secrets

the european information and Consultation Directive will be implemented in the UK next March, obliging employers with 150 or more workers to involve staff in all key decisions affecting the business.

Many employers will already have deals with unions or other staff bodies to discuss and disseminate information, but these will have to be reviewed to ascertain whether they comply with the directive.

Employers that don’t have an arrangement have a number of options:

• To negotiate a voluntary information and consultation agreement before March 2005
• To negotiate an agreement with employee representatives after March 2005
• To allow the directive’s default agreement to apply
• To wait for staff to request an agreement.

There is a strategic advantage to opting for a voluntary deal. Where no agreement exists, the obligation to negotiate one is triggered when the employer receives a request from at least 10% of the workforce. However, if a voluntary agreement is in place, 40% of the workforce must support a request to negotiate a new deal.

A negotiated agreement must:

• Set out the circumstances in which the company must inform or consult employees
• Be approved by 50% or more of all employees or all of the negotiating representatives
• Either provide for the appointment of information and consultation representatives or provide that the company supply information directly to employees and consult them directly.

The second option will allow businesses to use the company intranet to comply with the rules. Where attempts to reach a negotiated agreement fail within six months, or such other period as extended by agreement, default provisions will apply. Once representatives have been elected, the employer will have three obligations:

• To produce a report that sets out certain information about the business
• To inform and consult in respect of issues such as the planned use of temporary workers or consultants and the possibility of redundancy. It also focuses on “anticipatory measures envisaged where there is a threat to employment”
• To inform and consult in respect of decisions likely to lead to substantial changes in work organisation or contractual relations with a view to reaching agreement.

At present, the directive does not offer a defence for special circumstances and an employer will only be able to escape sharing information when the disclosure of the data would seriously harm the business.

If you employ fewer than 150 staff, you are not off the hook totally. All companies have to comply with the directive by March 2008.