With less than a year before the Information and Consultation Directive comes into force, three out of four companies in the UK have no procedures in place to cover its provisions.
From March 2005, UK firms employing more than 150 staff will be required to inform and consult with their employees upon a request by at least one in ten of the workforce.
On request, staff will have to be informed about the businessís economic situation and important changes planned by management.
But a new survey by the Involvement and Participation Association found that, while most HR professionals thought the law would impact on their business, only half knew when it would come into force.
The Directive will be extended to firms employing more than 50 people by 2008.