On April 6, the Information and Consultation of Employees (ICE) Regulations were extended to apply to all employers with 50 or more staff, and many experts on employment law see this as a positive change for workforces in the UK.

Introduced in April 2005 for companies with 150 or more employees, the ICE Regulations set out guidelines for telling staff about the business's economic status and possible changes to the working environment. They establish employee rights for minimum requirements on consulting workers about prospective job losses, mergers or plans to reorganise the business.

Disclosures such as this could cause huge disruption to small businesses from a disgruntled workforce, but Iain Mackintosh, Managing Director of legal document firm Simply-docs, said it is generally best to have information out in the open.

Although management sometimes fear talking to staff about what is happening in the company, it's usually good practice for small businesses to keep employees in the know, and that is why I support the new information and consultation rights for employees,' said Mackintosh.

'At times there can be legally sensitive information which must be kept under wraps, but when it comes to company performance it's usually best to be open.'

When it comes to restructuring or job cuts, along with considering the requirements of employment law and ICE Regulations, the main issue is whether to panic workers early on with unsettling news or surprising them with the news at the last minute. According to Mackintosh, there is a fine balance to strike.

'Employers should be clear about what they are hoping to achieve and why before communicating sensitive issues to employees, as vague messages can cause a high level of distrust and upset amongst employees.' he said.

'When there is a clear plan, workers should be informed of the proposals and the reasons for them and be given an opportunity to respond. Being kept in the dark could cause greater unrest in the later stages, which has the potential to be damaging to the company as a whole.

'Similarly, being given an unclear idea of plans could be equally damaging, and many small businesses lose their best performers as a result of the uncertainties they face in the light of vague announcements. Company changes can be life changing to individual workers, so keeping staff properly informed is crucial', said Mackintosh.

The Trades Union Congress (TUC) has also welcomed the new information and consultation rights. TUC general secretary Brendan Barber said: 'Well-run companies have been informing and consulting their employees for years. Only bad managers who insist on keeping their staff in the dark about company decisions and their futures have anything to fear from this new legislation.'

Another point to consider, said Mackintosh, is that staff who feel valued are more likely to be loyal to the company. 'Employees who are given regular, accurate information about their jobs are likely to be more committed to the organisation and will probably generate better results for the company.

'Trust between staff and their managers is absolutely vital for a healthy working environment.'

About Simply-docs:
Simply-docs (http://www.simply-docs.co.uk) is the latest fulfilment of Simply-4-Business Limited's mission to enable small and medium enterprises and owner managers to put in place correct documentation and procedures, and then to keep pace and comply with regulatory change at an affordable cost.