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.
The most important thing to consider is to make sure that your employees know what is going on at all stages of the procedure. Should you fail to communicate with your employees of their representatives during this crucial process it will not only cause fear and uncertainty within the workforce, it will result in allegations of unfairness in the redundancy decisions - making certain that expensive legal proceedings will occur.
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 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.
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 - 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 an appropriate cross section of skills should 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 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. This is because it will minimise the likelihood of unfair dismissal claims and it will also ensure that you retain those members of the team who are motivated through your transparent communication.
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, 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.
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.
Offering Assistance
Whilst you are not legally required to do so, it is thought to be good practice to give as much practical assistance to those who have been chosen for redundancy as possible. This could be in the form of offering help regarding looking for alternative employment, guidance on CV writing and interview techniques or advice on financial planning in the meantime. Offering such assistance will help to maintain good relationships even with those employees who are leaving: once again, minimising the likelihood of complaint or legal action.
Making redundancies is a difficult and potentially highly emotional task, fraught with complex legal obligations.
Making sure you follow the rules can not only protect you from costly tribunals, but make the whole process less emotional for all involved.
The most important thing to consider is to make sure that your employees know what is going on at all stages of the procedure. Should you fail to communicate with your employees of their representatives during this crucial process it will not only cause fear and uncertainty within the workforce, it will result in allegations of unfairness in the redundancy decisions - making certain that expensive legal proceedings will occur.
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 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.
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 - 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 an appropriate cross section of skills should 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 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. This is because it will minimise the likelihood of unfair dismissal claims and it will also ensure that you retain those members of the team who are motivated through your transparent communication.
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, 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.
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.
Offering Assistance
Whilst you are not legally required to do so, it is thought to be good practice to give as much practical assistance to those who have been chosen for redundancy as possible. This could be in the form of offering help regarding looking for alternative employment, guidance on CV writing and interview techniques or advice on financial planning in the meantime. Offering such assistance will help to maintain good relationships even with those employees who are leaving: once again, minimising the likelihood of complaint or legal action.
Making redundancies is a difficult and potentially highly emotional task, fraught with complex legal obligations.
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.
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