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.
Perhaps the most important consideration is to keep your employees informed at all times. Failure to consult with employees, or their representatives, throughout the process not only leads to uncertainty and fear within the workforce, but will almost certainly make any redundancies unfair - paving the way for expensive tribunals.
Secondly, it is important to remember that it is the job that becomes redundant - not the person. Whether it is because a manual operation has been superseded by technology, or simply that a particular function is no longer necessary, the job itself must disappear when the employee leaves. Contrary to popular opinion, it is perfectly legal to take on new staff whilst others are being made redundant. It may be that the skills needed to take your company forward cannot be found in your existing workforce -so as long as the new recruits are taken on to fill different functions, this is a perfectly legitimate process.
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 The Criteria For Redundancy
The main reason why redundancy should be considered is so that your workforce is as effective and streamlined as possible to ensure the success of your business. Deciding upon clearly defined selection criteria is the fairest way to make sure that all employees are treated equally, especially in regards to the way in which they can bring benefit to the company. Some suggested criteria you can consider include the following:
* Adaptability - this is especially important if your company is moving into a new sphere or market in order to progress: you will need to retain those employees who can cope best with change and have the ability to adapt.
* Skills " maintaining a good cross section of skills will assist you in maintaining a balanced and effective workforce.
* Performance " it would be sensible to retain your hardest-working team members. If you choose to do this, you will need documented evidence to support your decisions in order to avoid potential complaints of unfairness.
* Attendance - this is a valid criterion if applied fairly and consistently. Remember that you cannot 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 With Employees
In terms of reducing the likelihood of unfair dismissal claims and in keeping those who stay motivated and informed, consultation is a vital part of the redundancy process.
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 individual who is at risk, explaining your reasons for considering them for redundancy and organising a meeting to discuss the situation. If you do not arrange this, you will automatically be accused of unfair dismissal.
Continuing to communicate with both at risk staff and those who will be staying behind throughout the process will help to keep bad feelings to a minimum, and reduce your exposure to claims of unfair dismissal.
Assistance
Whilst it is not a legal requirement, it is considered good practice to give as much practical assistance to those who have been selected for redundancy as possible. This may include offering help on looking for alternative employment, guidance on CV writing and interview techniques, and advice on financial planning in the interim. Smoothing the path out in this way will help to maintain good relationships even with those employees who are leaving " again reducing 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. - 15478
Making sure you follow the rules can not only protect you from costly tribunals, but make the whole process less emotional for all involved.
Perhaps the most important consideration is to keep your employees informed at all times. Failure to consult with employees, or their representatives, throughout the process not only leads to uncertainty and fear within the workforce, but will almost certainly make any redundancies unfair - paving the way for expensive tribunals.
Secondly, it is important to remember that it is the job that becomes redundant - not the person. Whether it is because a manual operation has been superseded by technology, or simply that a particular function is no longer necessary, the job itself must disappear when the employee leaves. Contrary to popular opinion, it is perfectly legal to take on new staff whilst others are being made redundant. It may be that the skills needed to take your company forward cannot be found in your existing workforce -so as long as the new recruits are taken on to fill different functions, this is a perfectly legitimate process.
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 The Criteria For Redundancy
The main reason why redundancy should be considered is so that your workforce is as effective and streamlined as possible to ensure the success of your business. Deciding upon clearly defined selection criteria is the fairest way to make sure that all employees are treated equally, especially in regards to the way in which they can bring benefit to the company. Some suggested criteria you can consider include the following:
* Adaptability - this is especially important if your company is moving into a new sphere or market in order to progress: you will need to retain those employees who can cope best with change and have the ability to adapt.
* Skills " maintaining a good cross section of skills will assist you in maintaining a balanced and effective workforce.
* Performance " it would be sensible to retain your hardest-working team members. If you choose to do this, you will need documented evidence to support your decisions in order to avoid potential complaints of unfairness.
* Attendance - this is a valid criterion if applied fairly and consistently. Remember that you cannot 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 With Employees
In terms of reducing the likelihood of unfair dismissal claims and in keeping those who stay motivated and informed, consultation is a vital part of the redundancy process.
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 individual who is at risk, explaining your reasons for considering them for redundancy and organising a meeting to discuss the situation. If you do not arrange this, you will automatically be accused of unfair dismissal.
Continuing to communicate with both at risk staff and those who will be staying behind throughout the process will help to keep bad feelings to a minimum, and reduce your exposure to claims of unfair dismissal.
Assistance
Whilst it is not a legal requirement, it is considered good practice to give as much practical assistance to those who have been selected for redundancy as possible. This may include offering help on looking for alternative employment, guidance on CV writing and interview techniques, and advice on financial planning in the interim. Smoothing the path out in this way will help to maintain good relationships even with those employees who are leaving " again reducing 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. - 15478
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.
