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If you\u2019re thinking about making redundancies, then you\u2019re in good hands with The HR Dept.<\/p>\n
A redundancy consultation is a necessary part of any fair dismissal or redundancy process. It aims to ensure there is a genuine exchange of views and information between employers and employees with regard to why redundancies are being proposed and whether they can be avoided.<\/p>\n
The consultation will discuss, why the proposed redundancies are necessary, and any steps taken to avoid them, who is likely to be affected, how the business would select staff for redundancies, any concerns employees may have and how they will be supported.<\/p>\n
The length of a redundancy consultation will vary depending on how many redundancies an employer is planning to make. If it is between 20 and 99 redundancies, the consultation must start at least 30 days before any dismissals take effect. This period increases to at least 45 days if it is more than 100.<\/p>\n
An employee\u2019s notice period begins the day after an employer has notified them of their redundancy. This period will vary depending on how long an employee has worked for you or their contractual term. Less than one month requires no statutory notice, while 1 month – 2 years requires 1 week, 2 to 12 years requires 1 week for each complete year they have worked, and 12 years or more requires 12 weeks\u2019 notice.<\/p>\n
Employees that have worked for their employer for 2 years or more will usually be entitled to statutory redundancy pay. This will amount to half a week\u2019s pay for each full year they were under 22, one week\u2019s pay for each full year they were between 22 and 41, and one-and-a-half week\u2019s pay for each full year they were older than 40. Length of service is capped at 20 years.<\/p>\n
Employees are not entitled to statutory redundancy pay if their employer offers to keep them on or offers a suitable alternative role that they do not accept without good reason. However, employees do have the right to take reasonable time off to look for a new job or arrange training during this period.<\/p>\n
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Prepare your business case for staff redundancy. If it is to save money, itemise the savings you have already made before starting the redundancy process. Can you continue to use the furlough scheme or create alternative jobs before resulting in redundancies?<\/p>\n
If you have considered the alternatives and concluded that redundancies are unavoidable, it is essential to seek professional advice.<\/p>\n
Redundancy rules are complex and there are some additional considerations to remain aware of if you are currently claiming through the coronavirus job retention scheme.<\/p>\n
We understand that every situation is different. Our HR professionals can work with your business to design a solution that effectively manages your redundancy process.<\/p>\n
The most important part of any company redundancy process is that you end up with the best staff to take your business forward, and that any departing staff are treated fairly and leave the company with their dignity intact.<\/p>\n
You will need to be careful around notice periods, pay entitlements and selection criteria. Getting this wrong can lead to an employee bringing a tribunal case against you for unfair dismissal.<\/p>\n
To avoid discrimination, make sure all staff are included in the redundancy process, especially those on long-term sickness absence or maternity leave, although these groups do have additional protection.
Identify a potential selection pool. Then ensure your selection criteria is fair and score each person as objectively as you can.<\/p>\n
A collective consultation is the joint process by which employers and employee representatives discuss with a view to reaching an agreement whether there are any ways redundancies can be avoided or reduced and how the consequences of redundancies can be mitigated.<\/p>\n
It is a legal requirement to hold collective consultations if an employer is planning to make more than 20 people redundant within a 90-day period. The consultation needs to begin at least 30 or 45 days before the first dismissal takes place.<\/p>\n
Employers must notify the Redundancy Payments Service before a consultation can start. Then they can begin consultations with trade union representatives. If no trade union is recognised, the consultation must take place with elected employee representatives. Employers are required to give written information about the planned redundancies to these parties.<\/p>\n
At the end of the consultation period, employers must then issue termination notices to affected employees showing the agreed leaving date. Redundancy notices can only be issued when the consultation process is complete.<\/p>\n
Employees can file for protective award claims if an employer fails to follow the collective consultation rules and process correctly. If successful, employers may be required to pay 90 days\u2019 gross pay per affected employee.<\/p>\n
The Secretary of State for Business, innovation and Skills must also be notified at least 30 or 45 days in advance of the first dismissal taking place. Failure to do so is a criminal offence and can result in an employer receiving an unlimited fine.<\/p>\n
It is important to provide as much information as possible to the elected representatives or employees so that the consultation is productive.<\/p>\n
As a minimum, employers must provide written details about why they are making the redundancies, how many people it will affect and from which parts of the business, their criteria for selecting who to make redundant, how they will work out payments, what process they will follow, and any suitable information about its use of agency workers. Employers have a duty to respond to any other requests for clarification or further information from employee representatives.<\/p>\n
Employers can consult with individual employees at risk of redundancy during the collective consultation process but not before. Similar to the collective consultation, affected employees should also receive relevant information about the proposed changes – including the business rationale for proposing redundancies, a copy of any presentation slides and a Q&A document.<\/p>\n
During this period, it is an employer\u2019s duty to answer any questions affected employees have and discuss all options available to them. This might include whether there are any ways to mitigate the redundancy or if there are opportunities for alternative employment.<\/p>\n