Employers need to follow clear procedures, both for collective and individual redundancies in order to ensure all redundancy dismissals are handled fairly, giving those employees affected by a proposed redundancy, a full opportunity to make representations.
Going through a redundancy process can be traumatic for those affected and should be handled sensitively by employers. In addition, conducting redundancies without following the ACAS code of practice could lead to expensive employment issues.
Meaningful and timely consultation with all those at risk, whilst continuing to look for alternative options to redundancy throughout the process, are essential steps in getting it right.
Redundancy situations can also raise questions for employers, such as; ‘is it possible to make a role redundant whilst the person in-post is on maternity leave?’, or, ‘when can I start to recruit again after a redundancy situation?’
Making a plan helps employers follow the correct process shows how you will:
Avoid compulsory redundancies – by considering what other options can be considered such as;
offering voluntary redundancy or early retirement
agreeing to flexible working
temporarily reduce working hours
asking employees to stop working for a short time
retraining employees to do other jobs in your business
letting go of temporary or contract workers
limiting or stopping overtime
not hiring any new employees
Consult – how and when you will consult with employees (face to face or remotely during Covid-19) – getting their feedback, suggestions and input before any plans are finalised
Select for redundancy – how this will be done fairly, using a selection criteria that does not discriminate again individuals or groups
Give notice of redundancy – which is best given face to face and only once consultation has finished and the minimum period of 30 or 45 days has elapsed. Employers should also let employees know in writing and include within the letter;
their notice period
how much redundancy pay they’re due
how you have calculated the redundancy pay
any other pay you owe them (for example holiday pay)
when and how you’ll pay them
how they can appeal
Work out redundancy pay
employers much pay redundancy pay to employees who;
Support staff and plan for the future by considering:
employees at risk of redundancy
managers who are breaking the news
the people leading the consultations
employees staying on in the organisation
The above is a brief overview of the redundancy process, but if your business needs HR advice and support to get the process right, get in touch.
For more information, HR help and support on any of the HR topics listed here, contact Karen Scott on 07762 629 448 or get in touch by clicking here.
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