When the time comes to streamline your business, making redundancies can be the hardest part of the process. The regulations surrounding redundancy can feel like a minefield of potential litigation.
Making sure you follow the rules can not only protect you from costly tribunals, but make the whole process less emotional for all involved.
Perhaps the most important consideration is to keep your employees informed at all times. Failure to consult with employees, or their representatives, throughout the process not only leads to uncertainty and fear within the workforce, but will almost certainly make any redundancies unfair - paving the way for expensive tribunals.
Next, you should remember that it is not the person that is made redundant - it is the job. Consequently, regardless of whether the position was a manual operation taken over by technology or it is no longer required by the business, you must ensure that the job itself disappears when the employee leaves. Even though you may have been informed otherwise, it is perfectly legal to employ new people when others are made redundant, provided any new recruits are employed to fulfil functions that are different to the one made redundant.
Once the need to make redundancies has been established, there are several stages which the employer will need to go through in order to ensure that their obligations are met.
Establishing Redundancy Criteria
The main reason why redundancy should be considered is so that your workforce is as effective and streamlined as possible to ensure the success of your business. Deciding upon clearly defined selection criteria is the fairest way to make sure that all employees are treated equally, especially in regards to the way in which they can bring benefit to the company. Some suggested criteria you can consider include the following:
* Adaptability - this is especially important if your company is moving into a new sphere or market in order to progress: you will need to retain those employees who can cope best with change and have the ability to adapt.
* Skills - keeping a good cross section of skills can help keep your workforce balanced and effective.
* Performance " it is a wise move to retain your hardest-working employees. You will require documented evidence to support your decisions to avoid potential complaints of unfair treatment.
* Attendance " this is an appropriate criterion, but only if applied fairly and consistently. Remember that you should not use lack of attendance due to maternity, paternity or adoption leave as a decision regarding redundancy.
In an ideal situation, to make sure that the selection process is as fair and equal as possible, a combination of the above criteria should be considered.
Consultation With Employees
Consultation is a vital part of the redundancy process. This is because it will minimise the likelihood of unfair dismissal claims and it will also ensure that you retain those members of the team who are motivated through your transparent communication.
If it is possible you will be making more than 20 positions redundant within a 90-day period, you will also be required to inform the Department for Business, Enterprise and Regulatory Reform.
Rumours and speculation are unavoidable in times of change such as these. It is extremely important, therefore, to be as open and honest as possible so as to avoid unnecessary confusion. You should let those at risk know at the earliest possible point the reasons for the redundancies, the positions and departments affected, the likely number of employees at risk and the specific criteria you will be using in the selection process. You should also make sure that they are informed of timescales.
Contact each individual who is at risk, explaining your reasons for considering them for redundancy and organising a meeting to discuss the situation. If you do not arrange this, you will automatically be accused of unfair dismissal.
Keep the lines of communication open with both the at risk employees and those you will be retaining as this will minimise any ill feelings and in turn reduce the chances of an unfair dismissal claim.
Providing Assistance
Even though you are not legally required to do so, it is a good idea to assist those you have selected for redundancy in as many practical ways as possible. This could mean offering assistance in obtaining alternative employment, CV writing guidance and interview technique or even financial planning assistance. Acting this way will assist both you and your former employee in maintaining good relationships and will also reduce the chances of legal action.
Making redundancies is a difficult and potentially highly emotional task, fraught with complex legal obligations. - 15246
Making sure you follow the rules can not only protect you from costly tribunals, but make the whole process less emotional for all involved.
Perhaps the most important consideration is to keep your employees informed at all times. Failure to consult with employees, or their representatives, throughout the process not only leads to uncertainty and fear within the workforce, but will almost certainly make any redundancies unfair - paving the way for expensive tribunals.
Next, you should remember that it is not the person that is made redundant - it is the job. Consequently, regardless of whether the position was a manual operation taken over by technology or it is no longer required by the business, you must ensure that the job itself disappears when the employee leaves. Even though you may have been informed otherwise, it is perfectly legal to employ new people when others are made redundant, provided any new recruits are employed to fulfil functions that are different to the one made redundant.
Once the need to make redundancies has been established, there are several stages which the employer will need to go through in order to ensure that their obligations are met.
Establishing Redundancy Criteria
The main reason why redundancy should be considered is so that your workforce is as effective and streamlined as possible to ensure the success of your business. Deciding upon clearly defined selection criteria is the fairest way to make sure that all employees are treated equally, especially in regards to the way in which they can bring benefit to the company. Some suggested criteria you can consider include the following:
* Adaptability - this is especially important if your company is moving into a new sphere or market in order to progress: you will need to retain those employees who can cope best with change and have the ability to adapt.
* Skills - keeping a good cross section of skills can help keep your workforce balanced and effective.
* Performance " it is a wise move to retain your hardest-working employees. You will require documented evidence to support your decisions to avoid potential complaints of unfair treatment.
* Attendance " this is an appropriate criterion, but only if applied fairly and consistently. Remember that you should not use lack of attendance due to maternity, paternity or adoption leave as a decision regarding redundancy.
In an ideal situation, to make sure that the selection process is as fair and equal as possible, a combination of the above criteria should be considered.
Consultation With Employees
Consultation is a vital part of the redundancy process. This is because it will minimise the likelihood of unfair dismissal claims and it will also ensure that you retain those members of the team who are motivated through your transparent communication.
If it is possible you will be making more than 20 positions redundant within a 90-day period, you will also be required to inform the Department for Business, Enterprise and Regulatory Reform.
Rumours and speculation are unavoidable in times of change such as these. It is extremely important, therefore, to be as open and honest as possible so as to avoid unnecessary confusion. You should let those at risk know at the earliest possible point the reasons for the redundancies, the positions and departments affected, the likely number of employees at risk and the specific criteria you will be using in the selection process. You should also make sure that they are informed of timescales.
Contact each individual who is at risk, explaining your reasons for considering them for redundancy and organising a meeting to discuss the situation. If you do not arrange this, you will automatically be accused of unfair dismissal.
Keep the lines of communication open with both the at risk employees and those you will be retaining as this will minimise any ill feelings and in turn reduce the chances of an unfair dismissal claim.
Providing Assistance
Even though you are not legally required to do so, it is a good idea to assist those you have selected for redundancy in as many practical ways as possible. This could mean offering assistance in obtaining alternative employment, CV writing guidance and interview technique or even financial planning assistance. Acting this way will assist both you and your former employee in maintaining good relationships and will also reduce the chances of legal action.
Making redundancies is a difficult and potentially highly emotional task, fraught with complex legal obligations. - 15246
About the Author:
Katherine Wiid specialises in recruitment and redundancy and has written many articles specifically about the complex Redundancy Selection process. For further information on Redundancy Procedure, check out the website at Recrion.
