How to go about making redundancies

By Frank Green


There are many reasons why someone may find themselves redundant. For example, a redundancy could occur when a person's job is no longer required, or when new technology replaces the role that a person could previously fill. Alternatively, the redundancy could also be because of cost cutting measures on the part of the business.

The moment news breaks out in the office that some people will be made redundant, the workplace becomes more disruptive and less productive that it otherwise would be. Consequently, any company looking to minimise this level of disruption to their work environment should encourage management and other employees to openly talk to one another about their queries and concerns.

This is especially true when an employer intends to make twenty or more of its employees redundant over ninety days or fewer, as in such cases both the employees as a group, as well as individuals, should be consulted with. Failure to do so could lead to accusations of unfair dismissal.

When this kind of situation occurs, employers must make sure that they speak with the representatives of the employees who are likely to be affected by the redundancy measures. This doesn't just apply to those that will be directly affected by the redundancy measures, as those that will be indirectly affected must also be spoken with.

In order to ensure that the employer has legally fulfilled its obligations to its employees (even if they are volunteers) and to avoid any claims for protective award, it is important for the employer to enter into consultation with these representatives. The employer should enter discussions concerning how to reduce the number of redundancies, ways that they can be avoiding, and minimising the amount of disruption the redundancies will cause, and should try to come to an understanding with the representatives.

Formally, the consultation process should begin at least thirty days before the redundancies begin, although employers that intend to let more than one hundred of their employees go must start conversations at least ninety days beforehand. All redundancies made by an employer should be done within a ninety day period.

Although not a legal requirement, it is advisable for an employer to create a company policy regarding redundancy procedure. This policy can be created with the help of trade unions and employee representatives, and is a good way to improve relationships between employers and employees when something as stressful as redundancy dismissals occur.

Although the content of any redundancy policy will naturally vary from company to company, the following items could be good guidelines regarding what should be included in such a document: a statement of intent, emphasising the employer's commitment to job security; an outline of the consultation arrangements; what steps the employer will take to reduce the number of redundancies; details of the redundancy package; and information regarding appeals procedures.




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