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.
Making sure you follow the rules can not only protect you from costly tribunals, but make the whole process less emotional for all involved.
Perhaps the most important consideration is to keep your employees informed at all times. Failure to consult with employees, or their representatives, throughout the process not only leads to uncertainty and fear within the workforce, but will almost certainly make any redundancies unfair - paving the way for expensive tribunals.
It should also be remembered that it is the job that is made redundant - not the person. Regardless of the job description - whether it was a manual operation superseded by technology or a position that is no longer required due to other situations, the job itself must cease to exist when the person leaves. Regardless of what may be the message you have been given, it is legally okay to employ new people when others have been made redundant. What you must ensure, though, is that these new jobs fulfil different requirements and that the skills required do not exist within your present workforce.
Once the requirement to make redundancies has been determined, there are a number of stages which the employer will need to go through in order to meet their obligations to the employee.
Working Out 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 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 if applied fairly and consistently. Remember that you cannot use lack of attendance due to maternity, paternity or adoption leave.
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 With Staff
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 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 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.
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.
The procedure of making redundancies can be a very difficult task, particularly if you are not aware of its emotionally charged nature or of the possible legal ramifications.
Making sure you follow the rules can not only protect you from costly tribunals, but make the whole process less emotional for all involved.
Perhaps the most important consideration is to keep your employees informed at all times. Failure to consult with employees, or their representatives, throughout the process not only leads to uncertainty and fear within the workforce, but will almost certainly make any redundancies unfair - paving the way for expensive tribunals.
It should also be remembered that it is the job that is made redundant - not the person. Regardless of the job description - whether it was a manual operation superseded by technology or a position that is no longer required due to other situations, the job itself must cease to exist when the person leaves. Regardless of what may be the message you have been given, it is legally okay to employ new people when others have been made redundant. What you must ensure, though, is that these new jobs fulfil different requirements and that the skills required do not exist within your present workforce.
Once the requirement to make redundancies has been determined, there are a number of stages which the employer will need to go through in order to meet their obligations to the employee.
Working Out 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 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 if applied fairly and consistently. Remember that you cannot use lack of attendance due to maternity, paternity or adoption leave.
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 With Staff
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 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 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.
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.
The procedure of making redundancies can be a very difficult task, particularly if you are not aware of its emotionally charged nature or of the possible legal ramifications.
About the Author:
Katherine Wiid specialises 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 at Recrion.
