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.
Making sure you follow the rules can not only protect you from costly tribunals, but make the whole process less emotional for all involved.
Your number one consideration is to ensure that your employees are informed every step of the way. Failure to consult with employees, or their representatives, during the procedure not only results in uncertainty and fear within the workforce: it will almost certainly render any redundancies unfair – opening up the possibility of 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 you have worked out that there is in fact a need to make redundancies, there are a number of stages in the procedure that must be adhered to so that your obligations as an employer 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 – especially if your organisation is moving into a new area or market in order to move forward, you will need to retain the members of your staff who are comfortable with change and have the ability to adapt to new circumstances.
* Skills – keeping a good cross section of skills can help keep your workforce balanced and effective.
* Performance ” it would be sensible to retain your hardest-working team members. If you choose to do this, you will need documented evidence to support your decisions in order to avoid potential complaints of unfairness.
* Attendance ” this is a valid criterion only when it is applied fairly and consistently. Remember that it is not fair to 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
Consultation is a vital part of the redundancy process, both in terms of reducing the likelihood of unfair dismissal claims, and in keeping those who stay motivated and informed.
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 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.
Continuing to communicate with both at risk staff and those who will be staying behind throughout the process will help to keep bad feelings to a minimum, and reduce your exposure to claims of unfair dismissal.
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.
Remember that the procedure of making redundancies can be an emotional task and can be a litigious nightmare if not done correctly and sensitively.
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