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.
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 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 - 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 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 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
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 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 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 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.
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
Whilst it is not a legal requirement, it is considered good practice to give as much practical assistance to those who have been selected for redundancy as possible. This may include offering help on looking for alternative employment, guidance on CV writing and interview techniques, and advice on financial planning in the interim. Smoothing the path out in this way will help to maintain good relationships even with those employees who are leaving " again reducing the likelihood of complaint or 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.
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.
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 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 - 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 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 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
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 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 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 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.
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
Whilst it is not a legal requirement, it is considered good practice to give as much practical assistance to those who have been selected for redundancy as possible. This may include offering help on looking for alternative employment, guidance on CV writing and interview techniques, and advice on financial planning in the interim. Smoothing the path out in this way will help to maintain good relationships even with those employees who are leaving " again reducing the likelihood of complaint or 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.
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.
