ICE Covers More Of The Business Landscape

The Information and Consultation of Employees (“ICE”) Regulations 2004 came into force on 6th April 2005, applying initially to businesses with 150 or more employees.

The Regulations have been extended, with effect from 6th April 2008, to businesses with 50 or more employees and oblige employers, upon request, to establish information and consultation procedures by creating, for example, joint consultative committees.

There are special provisions for a ballot of employees where there are “pre-existing agreements”, to establish whether the employees wish to continue with such existing agreements or make new arrangements under the ICE Regulations.

Three categories of information are specifically covered by the Regulations:

a) Information about business prospects – here the obligation is to inform rather than to consult.

b) Current employment situation and prospects - any measures which are a threat to continued employment must be disclosed. The employer must both inform and consult with the employees.

c) Decisions likely to lead to substantial change in work organisation, including a proposed transfer of the undertaking or redundancies. The employer must inform and consult with a view to reaching agreement.

The Regulations are intended to provide a flexible framework, enabling businesses to tailor arrangements to their specific needs. A relevant employer should remember, however, that if no information and consultation agreement is in place, the employer may be required to introduce standard arrangements under the Regulations (this is now a basic requirement, upon request from the employees).

The Regulations refer to “employees”. This suggests that agency workers and other independent contractors, who may be deemed to be “workers” for the purposes of other legislation (such as the Working Time Regulations), will not be covered by the ICE Regulations.

It must not be forgotten that employees are also entitled to receive other information, including written statements of terms and conditions of employment and itemised pay statements (both requirements of the Employment Rights Act 1996). Unlike the ICE Regulations, these requirements apply to even the smallest business.