The needs of a business are ever changing and sometimes restructuring and redundancies are essential to keep an organisation running effectively. When this happens it can be a stressful time for both employees and employers.
As an employer, there are significant risks involved if the process is not conducted fairly and reasonably. Failing to carry out a thorough, fair and reasonable redundancy process could result in costly and stressful claims in the employment tribunal.
If you need to make redundancies within your workforce then you need to ensure you receive the correct advice at the outset, ensuring a fair and legal process for both parties.
There are a variety of things that need to be both considered and documented. These include:
- Is there a genuine need to make redundancies?
- If so, which roles are at risk?
- Whether a programme of voluntary redundancy should be offered before commencing a formal compulsory redundancy process.
- Employees should be warned, informed and consulted about their possible redundancy. If you are making more than 20 employees redundant then consideration should be given to undertaking collective consultation.
- An objective selection criteria should be established– this is essential to be able to deal with any later claims which could arise relating to unfair dismissal or unlawful discrimination.
- Consideration should be given to whether alternative employment can be found to avoid redundancies.
- Value of redundancy payments – this varies depending on the age of the staff member and is calculated in accordance with their length of service.
You can also view our helpful redundancy guide here. Ranked in The Legal 500, accredited by Lexcel and included in the Three Best Rated, you can be assured you will receive the best possible advice at all times.