Making redundancies can be the hardest part of the process when you need to streamline your business. It can sometimes feel as though you are in a nightmare of potential litigation.
Ensuring that the rules are followed will protect you from expensive tribunals and also make the entire procedure less emotional for those 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 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.
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
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 quite often run rampant during times of redundancy. As a result, you should be prepared to be as open and honest as possible in order to avoid unnecessary confusion. In particular, inform those at risk at the earliest possible stage of the reasons for the redundancies, the positions and departments likely to be affected, the approximate number of employees at risk and what criteria you will be considering in the selection procedure. It is also important that you keep them informed of the time line of events.
Contact each employee who is at risk of redundancy, detailing your reasons for the decision and arrange for a meeting to talk about the situation. If you fail to do this, it will automatically make any dismissal unfair.
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.
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.
Remember that the procedure of making redundancies can be an emotional task and can be a litigious nightmare if not done correctly and sensitively. - 16747
Ensuring that the rules are followed will protect you from expensive tribunals and also make the entire procedure less emotional for those 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 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.
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
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 quite often run rampant during times of redundancy. As a result, you should be prepared to be as open and honest as possible in order to avoid unnecessary confusion. In particular, inform those at risk at the earliest possible stage of the reasons for the redundancies, the positions and departments likely to be affected, the approximate number of employees at risk and what criteria you will be considering in the selection procedure. It is also important that you keep them informed of the time line of events.
Contact each employee who is at risk of redundancy, detailing your reasons for the decision and arrange for a meeting to talk about the situation. If you fail to do this, it will automatically make any dismissal unfair.
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.
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.
Remember that the procedure of making redundancies can be an emotional task and can be a litigious nightmare if not done correctly and sensitively. - 16747
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.
