When it is necessary to streamline your business, making choices regarding redundancies can be the most difficult part of the procedure. The regulations concerning redundancy can seem like a potential minefield of possible litigation.
When you make sure that you are sticking to the rules you will not only protect yourself from costly tribunals: you will ensure that the whole process is less emotional for everyone involved.
The most important thing to consider is to make sure that your employees know what is going on at all stages of the procedure. Should you fail to communicate with your employees of their representatives during this crucial process it will not only cause fear and uncertainty within the workforce, it will result in allegations of unfairness in the redundancy decisions - making certain that expensive legal proceedings will occur.
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 The Criteria For Redundancy
The major reason for redundancy should be to ensure that you have an effective, streamlined workforce that is best able to maintain and indeed improve your business. Determining well defined selection criteria is the best way to make sure that all employees are treated equally and that any benefit they bring to the company is properly assessed. The criteria you use should include:
* Adaptability - particularly if your company is moving into a new area or market in order to move forward, you may need to retain those staff who are most comfortable with change and have the ability to adapt.
* Skills " maintaining a good cross section of skills will assist you in maintaining a balanced and effective workforce.
* 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 a valid criterion if applied fairly and consistently. Remember that you cannot use lack of attendance due to maternity, paternity or adoption leave.
Ideally, in order to ensure that the selection process is a fair and equal as possible, a combination of the above criteria should be used.
Consultation With Employees
In terms of reducing the likelihood of unfair dismissal claims and in keeping those who stay motivated and informed, consultation is a vital part of the redundancy process.
If it seems to be the case that 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 will be rife in times of change such as these. It is vital to be as open and honest as possible in order to avoid unnecessary confusion. In particular, let those at risk know at the earliest possible stage the reasons for the redundancies, the positions and departments affected, the likely number of employees at risk, and what criteria you will be using in the selection process. You should also keep them 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.
If you continue to communicate openly with both at risk staff and those who will be staying behind throughout the process, it will help to keep negative emotions to a minimum and reduce the possibilities of claims of unfair dismissal.
Assistance
Whilst you are not legally required to do so, it is thought to be good practice to give as much practical assistance to those who have been chosen for redundancy as possible. This could be in the form of offering help regarding looking for alternative employment, guidance on CV writing and interview techniques or advice on financial planning in the meantime. Offering such assistance will help to maintain good relationships even with those employees who are leaving: once again, minimising the likelihood of complaint or legal action.
Making redundancies is a difficult and potentially highly emotional task, fraught with complex legal obligations. - 15246
When you make sure that you are sticking to the rules you will not only protect yourself from costly tribunals: you will ensure that the whole process is less emotional for everyone involved.
The most important thing to consider is to make sure that your employees know what is going on at all stages of the procedure. Should you fail to communicate with your employees of their representatives during this crucial process it will not only cause fear and uncertainty within the workforce, it will result in allegations of unfairness in the redundancy decisions - making certain that expensive legal proceedings will occur.
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 The Criteria For Redundancy
The major reason for redundancy should be to ensure that you have an effective, streamlined workforce that is best able to maintain and indeed improve your business. Determining well defined selection criteria is the best way to make sure that all employees are treated equally and that any benefit they bring to the company is properly assessed. The criteria you use should include:
* Adaptability - particularly if your company is moving into a new area or market in order to move forward, you may need to retain those staff who are most comfortable with change and have the ability to adapt.
* Skills " maintaining a good cross section of skills will assist you in maintaining a balanced and effective workforce.
* 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 a valid criterion if applied fairly and consistently. Remember that you cannot use lack of attendance due to maternity, paternity or adoption leave.
Ideally, in order to ensure that the selection process is a fair and equal as possible, a combination of the above criteria should be used.
Consultation With Employees
In terms of reducing the likelihood of unfair dismissal claims and in keeping those who stay motivated and informed, consultation is a vital part of the redundancy process.
If it seems to be the case that 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 will be rife in times of change such as these. It is vital to be as open and honest as possible in order to avoid unnecessary confusion. In particular, let those at risk know at the earliest possible stage the reasons for the redundancies, the positions and departments affected, the likely number of employees at risk, and what criteria you will be using in the selection process. You should also keep them 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.
If you continue to communicate openly with both at risk staff and those who will be staying behind throughout the process, it will help to keep negative emotions to a minimum and reduce the possibilities of claims of unfair dismissal.
Assistance
Whilst you are not legally required to do so, it is thought to be good practice to give as much practical assistance to those who have been chosen for redundancy as possible. This could be in the form of offering help regarding looking for alternative employment, guidance on CV writing and interview techniques or advice on financial planning in the meantime. Offering such assistance will help to maintain good relationships even with those employees who are leaving: once again, minimising the likelihood of complaint or legal action.
Making redundancies is a difficult and potentially highly emotional task, fraught with complex legal obligations. - 15246
About the Author:
Katherine Wiid is a specialist in employment and redundancy and has written many articles specifically about the complex Redundancy Selection process. For further information on Redundancy Procedure, check out the website.
