Making redundancies can be the hardest part of the process when you need to streamline your business. It can sometimes feel as though you are in a nightmare of potential litigation.
Making sure you follow the rules can not only protect you from costly tribunals, but make the whole process less emotional for all involved.
Your number one consideration is to ensure that your employees are informed every step of the way. Failure to consult with employees, or their representatives, during the procedure not only results in uncertainty and fear within the workforce: it will almost certainly render any redundancies unfair - opening up the possibility of expensive tribunals.
It should also be remembered that it is the job that is made redundant - not the person. Regardless of the job description - whether it was a manual operation superseded by technology or a position that is no longer required due to other situations, the job itself must cease to exist when the person leaves. Regardless of what may be the message you have been given, it is legally okay to employ new people when others have been made redundant. What you must ensure, though, is that these new jobs fulfil different requirements and that the skills required do not exist within your present workforce.
Once you have worked out that there is in fact a need to make redundancies, there are a number of stages in the procedure that must be adhered to so that your obligations as an employer are met.
Establishing Redundancy Criteria
The major reason for redundancy should be to ensure that you have an effective, streamlined workforce that is best able to maintain and indeed improve your business. Determining well defined selection criteria is the best way to make sure that all employees are treated equally and that any benefit they bring to the company is properly assessed. The criteria you use should include:
* Adaptability - especially if your organisation is moving into a new area or market in order to move forward, you will need to retain the members of your staff who are comfortable with change and have the ability to adapt to new circumstances.
* Skills - keeping a good cross section of skills can help keep your workforce balanced and effective.
* Performance " it is a wise move to retain your hardest-working employees. You will require documented evidence to support your decisions to avoid potential complaints of unfair treatment.
* Attendance " this is a valid criterion only when it is applied fairly and consistently. Remember that it is not fair to use lack of attendance due to maternity, paternity or adoption leave.
Ideally, so as to make sure that the selection process is as fair and equal as humanly possible, a combination of the above criteria can be used.
Consultation
Consultation is a vital part of the redundancy process, both in terms of reducing the likelihood of unfair dismissal claims, and in keeping those who stay motivated and informed.
If it is possible you will be making more than 20 positions redundant within a 90-day period, you will also be required to inform the Department for Business, Enterprise and Regulatory Reform.
Rumours and speculation are unavoidable in times of change such as these. It is extremely important, therefore, to be as open and honest as possible so as to avoid unnecessary confusion. You should let those at risk know at the earliest possible point the reasons for the redundancies, the positions and departments affected, the likely number of employees at risk and the specific criteria you will be using in the selection process. You should also make sure that they are informed of timescales.
Contact each employee who is at risk, explaining your reasons for considering making them redundant and arranging a meeting to discuss the situation. Failure to do this will automatically make any dismissal unfair.
Keep the lines of communication open with both the at risk employees and those you will be retaining as this will minimise any ill feelings and in turn reduce the chances of an unfair dismissal claim.
Assistance
Whilst you are not legally required to do so, it is thought to be good practice to give as much practical assistance to those who have been chosen for redundancy as possible. This could be in the form of offering help regarding looking for alternative employment, guidance on CV writing and interview techniques or advice on financial planning in the meantime. Offering such assistance will help to maintain good relationships even with those employees who are leaving: once again, minimising the likelihood of complaint or legal action.
The procedure of making redundancies can be a very difficult task, particularly if you are not aware of its emotionally charged nature or of the possible legal ramifications. - 15431
Making sure you follow the rules can not only protect you from costly tribunals, but make the whole process less emotional for all involved.
Your number one consideration is to ensure that your employees are informed every step of the way. Failure to consult with employees, or their representatives, during the procedure not only results in uncertainty and fear within the workforce: it will almost certainly render any redundancies unfair - opening up the possibility of expensive tribunals.
It should also be remembered that it is the job that is made redundant - not the person. Regardless of the job description - whether it was a manual operation superseded by technology or a position that is no longer required due to other situations, the job itself must cease to exist when the person leaves. Regardless of what may be the message you have been given, it is legally okay to employ new people when others have been made redundant. What you must ensure, though, is that these new jobs fulfil different requirements and that the skills required do not exist within your present workforce.
Once you have worked out that there is in fact a need to make redundancies, there are a number of stages in the procedure that must be adhered to so that your obligations as an employer are met.
Establishing Redundancy Criteria
The major reason for redundancy should be to ensure that you have an effective, streamlined workforce that is best able to maintain and indeed improve your business. Determining well defined selection criteria is the best way to make sure that all employees are treated equally and that any benefit they bring to the company is properly assessed. The criteria you use should include:
* Adaptability - especially if your organisation is moving into a new area or market in order to move forward, you will need to retain the members of your staff who are comfortable with change and have the ability to adapt to new circumstances.
* Skills - keeping a good cross section of skills can help keep your workforce balanced and effective.
* Performance " it is a wise move to retain your hardest-working employees. You will require documented evidence to support your decisions to avoid potential complaints of unfair treatment.
* Attendance " this is a valid criterion only when it is applied fairly and consistently. Remember that it is not fair to use lack of attendance due to maternity, paternity or adoption leave.
Ideally, so as to make sure that the selection process is as fair and equal as humanly possible, a combination of the above criteria can be used.
Consultation
Consultation is a vital part of the redundancy process, both in terms of reducing the likelihood of unfair dismissal claims, and in keeping those who stay motivated and informed.
If it is possible you will be making more than 20 positions redundant within a 90-day period, you will also be required to inform the Department for Business, Enterprise and Regulatory Reform.
Rumours and speculation are unavoidable in times of change such as these. It is extremely important, therefore, to be as open and honest as possible so as to avoid unnecessary confusion. You should let those at risk know at the earliest possible point the reasons for the redundancies, the positions and departments affected, the likely number of employees at risk and the specific criteria you will be using in the selection process. You should also make sure that they are informed of timescales.
Contact each employee who is at risk, explaining your reasons for considering making them redundant and arranging a meeting to discuss the situation. Failure to do this will automatically make any dismissal unfair.
Keep the lines of communication open with both the at risk employees and those you will be retaining as this will minimise any ill feelings and in turn reduce the chances of an unfair dismissal claim.
Assistance
Whilst you are not legally required to do so, it is thought to be good practice to give as much practical assistance to those who have been chosen for redundancy as possible. This could be in the form of offering help regarding looking for alternative employment, guidance on CV writing and interview techniques or advice on financial planning in the meantime. Offering such assistance will help to maintain good relationships even with those employees who are leaving: once again, minimising the likelihood of complaint or legal action.
The procedure of making redundancies can be a very difficult task, particularly if you are not aware of its emotionally charged nature or of the possible legal ramifications. - 15431
About the Author:
Katherine Wiid specialises in recruitment and redundancy and has written many articles specifically about the complex Redundancy Selection process. For further information on Redundancy Procedure, check out the website at Recrion.
