Redundancy is a sensitive topic and needs to be handled with care and compliance which is why it's often necessary to seek the help and support of a professional third party such as our Employment Law Consultants.
What is redundancy?
Redundancy is the dismissal of an employee due to:
- The actual or intended closure of the whole business;
- The actual or intended closure of the business at a particular workplace;
- A reduction in the need for employees to carry out work of a particular kind.
This could be a result of a need to reduce costs/overheads, a downturn in the amount of work available, a restructure of the business or a relocation of the business.
If you are contemplating redundancies due to the loss of a contract or the sale of a business or part of the business, this may be a relevant transfer for the purposes of the Transfer of Undertakings (Protection of Employment) Regulations 2006 instead, under which your staff may have the legal right to have their employment transferred.
If such staff members are made redundant where there has been a transfer that is covered by this legislation, then such redundancies could be automatically unfair.
Please call us on 0845 2626 260 or drop us an email if you need further advice on whether you are within your right to carry out a redundancy.
What is a fair redundancy process?
Once you have established that a redundancy is the right course of action, you will need to put a plan in place. This will include identifying the reason for said redundancy and producing evidence that there is genuine need to make redundancies.
It is then common practice to ask for volunteers during the announcement stage before you undertake any potential assessment. The advantage of accepting volunteers is that it avoids the need for compulsory redundancies and the demoralisation of staff that is often felt as a result.
You also need to consider that any alternative vacancies should be offered to any staff member who is at risk of redundancy.
The redundancy process itself can be broken down into four stages following the planning stage and that is:
- Announcement: It is advised that you make a verbal announcement, either to the whole workforce or just to the individuals affected, followed by a written confirmation.
- Consultation: The purpose of the consultation process, which should take place after announcement stage is to explore ways of avoiding redundancies and minimising the effects with the affected employees.
- Confirmation of Redundancy and Payments: You will need to calculate statutory redundancy payment if the employee has more than 2 years’ service.
- Appeals: Staff who are made redundant have the right to appeal this decision and this will typically be a consultation meeting held by a more senior member such as a managing director.
Each of the first three steps will require letters to be written up and presented to the affected employees, i.e. the first letter will notify the employee that they are at risk of being made redundant, the second letter will need to invite them to a consultation and the final letter will confirm their redundancy and outline any important details including their leaving date.
Get expert help with making redundancies
Our Employment Law Consultants can guide you through every step of a redundancy procedure including the initial planning stages. This will ensure that you are 100% compliant with the law whilst making the best decisions for your business, and it will alleviate some of the stress and difficult decisions associated with making an employee(s) redundant.
At an additional cost, we also offer follow-up support for the employee(s) with our Employee Redundancy Support Service which gives them one-on-one time with our recruitment expert. During this time, they will receive feedback on their CV and cover letter templates, a mock job interview with advice and an opportunity to ask any questions about the recruitment process.
This is a great way to maintain a good relationship with employees who are being made redundant and with remaining employees as it will show them that you are willing to go above and beyond to support your staff.
Our redundancy support service includes:
- Unlimited access to bespoke advice from your dedicated employment law consultant
- Access to comprehensive, professionally-written guidance documents
- Assistance with pay calculations
- The drafting up of a redundancy plan and other documents such as employee confirmation letters
- Your named consultant sitting in on any meetings including appeal hearings and consultations
If you need professional support and advice in planning, starting or completing a redundancy process then call us today on 0845 2626 260