Ministers, businesses and union leaders have reached agreement on the implementation of a European Union directive on informing and consulting employees.

Under the changes, workers will be able to request information and consultation arrangements with company bosses with a petition from 10 per cent of the total workforce, after which a period of time will be allowed for reaching new agreements.

Forum Response: Chartered Institute of Personnel and Development

Mike Emmott, head of employee relations at the CIPD, said: "This is not the bad news story that some employers had feared. The draft regulations present HR directors with an opportunity to push employee communications right up the corporate agenda.

"This is an issue about the bottom line and about winning hearts and minds. Employers need to establish relationships based on trust if employees are to be engaged in and committed to their work. Information and consultation are key tools in the process of winning trust.

"The good news for employers is that they can agree with their employees that existing good practice will continue and will satisfy the requirements of the regulations. This means for example that where employers currently inform and consult their employees directly, rather than through representatives, they can continue to do so provided their employees are happy with the arrangements.

"So despite some reports to the contrary, the threat that all employers would be required to squeeze into a single legal straightjacket and establish works councils, has not materialised. The government has listened to the voices of employer and professional bodies who have urged the need for a flexible approach."

Forum Response: Institute of Directors

Ruth Lea, head of the policy unit at the IoD, said: "The compulsory Information and Consultation Directive will undermine business competitiveness and flexibility.

"It will also have a major impact on corporate industrial relations. The vast majority of UK companies already voluntarily consult staff.

"The EU's formalised consultation process will bring yet more red tape to the workplace."

Forum Response: Federation of Small Businesses

A spokesman for the FSB told ePolitix.com: "We are pleased that the DTI recognises that the relationship between employers and employees is very different in a small business and a large, multi-site, multinational firm.

"We welcome the exemption for businesses with less than 50 employees but are calling for the DTI to ensure that the guidance recognises the diversity of medium sized firms just above this cut-off point.

"The government also appears to have been listening to the FSB, Better Regulation Task Force and others and is implementing the directive in stages, starting with the largest companies that are best placed to iron out any practical difficulties."