Information and Consultation of Employees Regulations 2004
What this means for your business
- Applies to
- United Kingdom
- On this page
- 20 compliance obligations, 1 practical guide
What you must do
20 compliance obligations under this legislation.
Appointments 1
Arrange election of employee negotiating representatives and start negotiations
Fine up to £75,000If you want to begin collective negotiations under the Information and Consultation of Employees Regulations, you must promptly set up a fair election or appointment of employee representatives, tell all staff in writing who those representatives are, and invite them to negotiate. The whole process has to follow strict time limits – the election must be completed within three months of the request/notification (excluding certain excluded periods) and the negotiations must finish within six months unless both sides agree to extend them.
Management duties 10
Allow time off for employee representatives
Fine up to £75,000If any of your staff are appointed as a negotiating representative or an information and consultation representative, you must let them take reasonable time off during their normal working hours to carry out those duties. The time off should be arranged without harming the employee’s pay or employment conditions.
Arrange employee ballot to elect information and consultation representatives
Fine up to £75,000If the standard information and consultation rules are set to apply to your business, you must first hold a vote among your staff to elect representatives. The number of reps is one per every 50 employees (or part thereof), with at least 2 and no more than 25. Failure to do so can lead to a complaint, an order to hold the ballot and a fine of up to £75,000.
Comply with CAC orders on ICT disputes
Fine up to £75,000If an employee or their representative complains to the Central Arbitration Committee that you have broken a negotiated agreement or the standard information‑and‑consultation rules, the CAC can order you to take specific steps. You must carry out those steps within the time‑frame set in the order, or you risk a fine of up to £75,000.
Conduct a compliant information & consultation ballot
Fine up to £75,000When you need to hold a ballot under Regulation 19 (i.e. when the required number of employee representatives has been reached), you must run the ballot correctly. This means giving every eligible employee the right to vote and stand as a candidate, appointing an independent ballot supervisor, consulting staff on how the ballot will work, publishing the final arrangements, handling any complaints, and publishing the results. All costs, including the supervisor’s fees, are borne by you.
Conduct a repeat election/appointment of negotiating representatives if required
Fine up to £75,000If an employee or their representative believes the election or appointment of negotiating representatives did not follow the legal rules, they can lodge a complaint within 21 days. Should the Central Arbitration Committee (CAC) find the complaint well‑founded, your business must run the election or appointment again within the timeframe set by the CAC.
Cooperate with employees on information & consultation matters
Fine up to £75,000When you negotiate or put into practice an employee information and consultation agreement, you must work together with staff in a spirit of co‑operation. This means respecting each side’s rights and balancing the interests of your business and your employees throughout the process.
Hold a new ballot if CAC orders after complaint
Fine up to £75,000If a negotiating representative complains that your employee ballot didn’t meet the legal rules and the Central Arbitration Committee agrees, you must run a fresh ballot for employee approval of the negotiated agreement within the timeframe the CAC sets.
Hold ballot to endorse employee request under pre‑existing agreement
Fine up to £75,000If fewer than 40% of your staff make a formal request for information and consultation and you already have a written agreement covering everyone, you can choose to run a ballot instead of starting negotiations straight away. You must tell all employees in writing within a month, wait at least 21 days, run a fair secret ballot where everyone can vote, and then promptly announce the result. If at least 40% of all staff are eligible to vote and a majority of those who vote support the request, you must begin negotiations; otherwise you are not obliged to do so.
Provide information and consult employee representatives
Fine up to £75,000If you have elected information and consultation representatives under the ICE Regulations, you must give them up‑to‑date details about your business’s financial outlook, employment structure (including agency workers) and any plans that could change work organisation or contracts. You then have to consult with them on these matters in a timely and appropriate way, aiming to reach agreement where the law requires it.
Start negotiations when employees make a valid request
If at least 2 % of your workforce (but not fewer than 15 or more than 2 500 people) submit a written request for information and consultation, you must begin the negotiation process set out in regulation 14(1). The request must be sent to your registered office or the Commission for Health and Safety (CAC) and meet the formal requirements. You also have to supply any information the CAC asks for and keep a record of the whole process.
Notifications 1
Notify employees in writing when starting negotiations
Fine up to £75,000If you, as an employer, decide to begin the collective negotiation process on your own initiative, you must issue a written notice to your staff. The notice must say you are starting negotiations, include the date it is issued, and be published so that all employees can reasonably see it. This triggers the formal negotiation rules set out in the regulations.
Other requirements 1
Maintain confidentiality of entrusted information
Fine up to £75,000If you give an employee, contractor or any other person information that you say must be kept secret, they must not share it unless the confidentiality terms allow it. Breaching this duty can lead to a civil claim against them and a fine of up to £75,000.
Payments and fees 2
Allow statutory time off and pay the required remuneration
If an employee asks for time off to receive or provide information and consultation (as set out in regulation 27), you must let them take that time and you must pay them the remuneration they’re owed (regulation 28). Failing to do so can lead to an employment tribunal ordering you to pay the missed wages and possibly other compensation.
Pay remuneration for employee time off under regulation 27
If you let an employee take time off to carry out information and consultation duties (as set out in regulation 27), you must pay them for that time at their normal hourly rate. The rate is worked out by dividing a week’s pay by the employee’s normal weekly hours (using an average if the hours vary). This payment satisfies the statutory right to be paid for the leave taken.
Policies 1
Enter into a written negotiated agreement covering all employees
Fine up to £75,000If you negotiate an agreement with employee representatives, you must put it in writing, date it and have it signed by the employer. The agreement must set out when you must give information and consult staff, be approved by the representatives (or by a ballot of at least 50% of employees) and include either elected representatives or a direct information‑consultation process, plus details about any agency workers.
Record keeping 1
Provide accurate employee data when requested and obey CAC orders
Fine up to £75,000If an employee or their representative asks you for information under the Information and Consultation of Employees Regulations, you must give it. Giving false, incomplete or delayed data can lead to a complaint to the Central Arbitration Committee, which can order you to supply the correct information within at least one week. Keep the required records ready and respond promptly to avoid a breach.
Reporting and filing 3
Include agency worker details in employment info under pre‑existing agreements
Fine up to £75,000If you have to give information about your workforce under a pre‑existing agreement, you must also include details of any agency workers you use. Make sure the agency‑worker data is part of the information you send to the other party.
Provide employee data when asked in writing
Fine up to £75,000If an employee or their representative sends you a written, dated request for data to work out how many people you employ in the UK, you must give them the information they need. This includes the figures required to calculate the total head‑count and the number that equals 2% of that total.
Provide information to the CAC when asked
Fine up to £75,000If your company is involved in a CAC complaint or application, you must give any documents or information the CAC reasonably asks for. Refusing or failing to supply them can lead the CAC to use this as evidence against you, so keep relevant records ready to share.
Penalties for non-compliance
17 penalties under this legislation.
Arrange election of employee negotiating representatives and start negotiations
Fine up to £75,000
Allow time off for employee representatives
Fine up to £75,000
Arrange employee ballot to elect information and consultation representatives
Fine up to £75,000
Comply with CAC orders on ICT disputes
Fine up to £75,000
Conduct a compliant information & consultation ballot
Fine up to £75,000
Conduct a repeat election/appointment of negotiating representatives if required
Fine up to £75,000
Cooperate with employees on information & consultation matters
Fine up to £75,000
Hold a new ballot if CAC orders after complaint
Fine up to £75,000
Hold ballot to endorse employee request under pre‑existing agreement
Fine up to £75,000
Provide information and consult employee representatives
Fine up to £75,000
Notify employees in writing when starting negotiations
Fine up to £75,000
Maintain confidentiality of entrusted information
Fine up to £75,000
Enter into a written negotiated agreement covering all employees
Fine up to £75,000
Provide accurate employee data when requested and obey CAC orders
Fine up to £75,000
Include agency worker details in employment info under pre‑existing agreements
Fine up to £75,000
Provide employee data when asked in writing
Fine up to £75,000
Provide information to the CAC when asked
Fine up to £75,000
Practical guidance
Our guides explain how to comply with the requirements above.
Sections and provisions
47 classified provisions from this legislation.
Duties 21
- Schedule 2 REQUIREMENTS FOR BALLOTS HELD UNDER REGULATION 19
- s.5 Entitlement to data
- s.6 Complaint of failure to provide data The CAC
- s.7 Employee request to negotiate an agreement in respect of information and consultation separate request referred
- s.8 Pre-existing agreements: ballot for endorsement of employee request
- s.11 Employer notification of decision to initiate negotiations
- s.14 Negotiations to reach an agreement but the following periods
- s.15 Complaints about election or appointment of negotiating representatives
- s.16 Negotiated agreements
- s.17 Complaints about ballot for employee approval of negotiated agreement
- s.19 Election of information and consultation representatives
- s.20 Standard information and consultation provisions employer
- s.21 Co-operation
- s.22 Disputes about operation of a negotiated agreement or the standard information and consultation provisions
- s.25 Breach of statutory duty action
- s.27 Right to time off for information and consultation representatives, etc.
- s.28 Right to remuneration for time off under regulation 27
- s.29 Right to time off: complaint to tribunals amount
- s.35 CAC proceedings
- s.38 ACAS
- ... and 1 more duties
Definitions 4
Exemptions 8
- s.12 Restrictions on employee request and employer notification
- s.26 Withholding of information by the employer
- s.30 Unfair dismissal
- s.32 Detriment
- s.39 Restrictions on contracting out: general
- s.40 Restrictions on contracting out: Part VIII
- s.41 Amendments to the Employment Appeal Tribunal Rules 1993
- s.43 Exception for merchant navy