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Redundancy & Restructure

Basic Redundancy Rules to Consider

As an employer ourselves we know that making staff redundant is a difficult but often necessary part of running a business. The redundancy consultation process can be a minefield and getting critical redundancy rules wrong can prove very expensive, especially if an employee brings an employment tribunal case against you for unfair dismissal.

The most important part of any company restructuring redundancy programme 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.

Redundancy Tips for Employers

Here are some top tips for employers who have a need to downsize, ensuring your business is on the right side of legislation. It is important when making staff redundant that minimise the chance of you facing an employment tribunal from a disgruntled employee, so:

  • Prepare your business case for staff redundancy; there are many reasons for restructuring your company but if it is to save money, itemise the savings you have already made before starting the consultation process.
  • Consult in good time with all the affected employees (and if there is Trade Union recognition in place, consult the Trade Union representatives) or if over 20 staff are at risk, consult with their elected representatives/Trade Union Representatives and listen to their ideas and suggestions. The consultation period depends on the numbers of staff involved.
  • Make sure all staff are included in the redundancy consultation process especially those on long term sickness absence or maternity leave.
  • Identify a potential selection pool then ensure your selection criteria is fair and score each person as objectively as you can.
  • Follow the statutory dismissal process properly, talk to us if you are unsure – one call can help
  • Make sure departing staff leave with their dignity intact and armed with a reference to help them find a new role.
  • Once the redundancy process is over, make an announcement to remaining staff informing them that you intend to keep them in your employment in order to keep them motivated.

However, every business situation is different and you really need objective, business focused advice to help navigate the rules and redundancy process correctly.

Call 0345 180 1120 or email for more information today.