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.
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 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.
Working Out the Criteria For Redundancy
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 - 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 " 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 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 you are planning on making more than 20 positions redundant within a 90-day period, you will also need 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 employee who is at risk, explaining your reasons for considering making them redundant and arranging a meeting to discuss the situation. Failure to do this will automatically make any dismissal unfair.
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.
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. - 16459
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 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.
Working Out the Criteria For Redundancy
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 - 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 " 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 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 you are planning on making more than 20 positions redundant within a 90-day period, you will also need 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 employee who is at risk, explaining your reasons for considering making them redundant and arranging a meeting to discuss the situation. Failure to do this will automatically make any dismissal unfair.
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.
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. - 16459
About the Author:
Katherine Wiid is a specialist 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 www.recrion.co.uk.
