UK Redundancy Rules are Important for Employers too
Making staff redundant is a difficult but often necessary part of running a business. The redundancy process though is a minefield and getting the rules of redundancy wrong can prove very expensive.
Check out below our top tips on ensuring your business os on the right side of the Rules of Redundancy:
1. Prepare your business case, itemise the savings you have already made and plan the staff redundancy announcement carefully.
2. Consult with all the affected employees and listen to their ideas and suggestions. The consultation time depends on the numbers of staff involved.
3. If having to choose from a pool of similar employees to make redundancy from their work then ensure your selection criteria is fair and score each person as objectively as you can.
4. Follow the statutory dismissal process properly, talk to us if you are unsure, click here!
5. Once the redundancy process is over make an announcement to remaining staff and keep them motivated.
However businesses and situations are all highly personal and we are offering a free 5 minute call with one of our advisors so that you can receive professional advice on making employees redundant or other factors tailored to your situation.
More on redundancy during an economic downturn
We are receiving a record number of calls on Redundancy Rules for SME’s and how to make staff redundant in this economic downturn, says Sue Tumelty, MD of The HR Dept, a national HR company with offices across the UK.
Since the summer we have seen an increase in business owners needing to be kept up-to-date on redundancies and their associated and complicated rules that go with this style of employment termination. “Our Redundancy Advice hotline” has been kept busy with business owners finding out about redundancy.
Most employers do not want to let their staff go.
“Over 60% of the calls we receive are from business owners and managers asking about the redundancy process and staying on the right side of the law. For most company owners making members of staff redundant is a terribly hard decision, as most have built close relationships with their employees during the prospering economy we have all enjoyed these past several years.”
“Its now too easy to get redundancy rules and procedures wrong and if you do, you are highly likely to be taken to an employment tribunal by your employee and if you do, you will lose. The fines from an employment tribunal can be a truly terrifying amount for any business owner, especially SME’s.”
Keeping communications channels clear and open with your staff is absolutely vital to ensure all of them understand fully as to why they are facing redundancy. Remember that making someone redundant is ending that person’s contract of employment without them actually doing anything wrong or incorrect. Getting the redundancy process right - even though an unpleasant process – will prevent you from facing tribunal and hefty fines.
Call today and get free advice on 0845 053 3666
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