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.
Ensuring that the rules are followed will protect you from expensive tribunals and also make the entire procedure less emotional for those 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.
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.
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 - 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 - you may wish to retain your hardest-working team members. Youll need documented evidence to support your decisions to avoid possible 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.
Ideally, so as to make sure that the selection process is as fair and equal as humanly possible, a combination of the above criteria can 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 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 will be rife in times of change such as these. It is vital to be as open and honest as possible in order to avoid unnecessary confusion. In particular, let those at risk know at the earliest possible stage the reasons for the redundancies, the positions and departments affected, the likely number of employees at risk, and what criteria you will be using in the selection process. You should also keep them 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.
Keep the lines of communication open with both the at risk employees and those you will be retaining as this will minimise any ill feelings and in turn reduce the chances of an unfair dismissal claim.
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.
Ensuring that the rules are followed will protect you from expensive tribunals and also make the entire procedure less emotional for those 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.
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.
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 - 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 - you may wish to retain your hardest-working team members. Youll need documented evidence to support your decisions to avoid possible 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.
Ideally, so as to make sure that the selection process is as fair and equal as humanly possible, a combination of the above criteria can 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 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 will be rife in times of change such as these. It is vital to be as open and honest as possible in order to avoid unnecessary confusion. In particular, let those at risk know at the earliest possible stage the reasons for the redundancies, the positions and departments affected, the likely number of employees at risk, and what criteria you will be using in the selection process. You should also keep them 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.
Keep the lines of communication open with both the at risk employees and those you will be retaining as this will minimise any ill feelings and in turn reduce the chances of an unfair dismissal claim.
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.
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