The EU Directive on National Information and Consultation
(Directive 2002/14/EC)

The objective of this Directive is to provide employees with the right to information and consultation about the business in which they work and its prospects, with particular emphasis on the outlook for employment. This will mean that employers will have to consult over plans for mergers, disposals, discontinuance of product lines, redundancies, outsourcing and other major changes to employment terms. Employees' current rights are limited to consultation about collective redundancies, transfers of undertakings and health and safety, but this legislation undoubtedly allows for significant changes.

By March 2005 companies in the UK with more than 150 employees will have to apply the Directive, companies with more than 100 employees by March 2007 and companies with more than 50 employees by March 2008.

This legislation will have a significant impact on UK Businesses therefore it is imperative that they create effective information and consultation arrangements as early as possible.