by Nick Graves, Lexology
Alongside the structural governance question, government also needs to consider whether change will be implemented through best practice recommendations or legally binding requirements. The UK’s traditional preference would be to adopt a ‘comply or explain’ approach. This more flexible route would allow companies to discuss employee representation with their employees without the need to comply with a rigid legal framework and without giving rise to concerns that inadequate consultation could result in penalties / fines.
Next steps
It would perhaps be surprising if nothing changed. When the government publishes its consultation paper we will have a clearer idea on which structure it prefers. In the meantime those interested in following this topic should read “Bringing employee voice into the boardroom” recently published by Tomorrow’s Company.
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