Small companies must ensure that managers establish a respectful dialogue with their staff.
Following changes to the information and consultation regulations, UK businesses that employ between 50 and 100 people will have to discuss strategy and workplace developments with their staff.
The Trades Union Congress has backed the new rights and has warned managers to be open with their staff when it comes to business changes.
Brendan Barber, TUC general secretary, said: “These changes mean that employees in smaller companies will have a right to be told what’s going on in their workplaces.
“Well-run companies have been informing and consulting their employees for years.
“Sensible employers know that helping staff feel valued and involved in the running of their firm or organisation gives them a more competitive edge.”
He added: “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.”