Completing a Fair Redundancy Process
Restructures and redundancies are likely to be stressful and emotional.
Below is a list of top tips that employers may find useful when handling these difficult situations.
1. Follow your company’s procedure
· Tribunals can automatically judge a redundancy unfair if a company does not follow it’s own procedure.
2. Ensure that you have a justifiable reason for redundancy
3. Consult properly and meaningfully
· Start consulting with employees as soon as possible and well before a decision has been made. Employees on maternity or sick leave should also be included.
· Where possible, information about current challenges should be shared to facilitate dialogue with employees as to whether salary reductions, shorter working weeks or job shares could prevent redundancies.
· Voluntary redundancies should also be considered where feasible.
4. Use a fair selection procedure
Consult with employee representatives about the criteria. Criteria may include:
· Attendance records as long as pregnancy-related and disability-related absences are discounted. Employees should be scored fairly, for instance ensuring that an employee who has had one long period of absence due to surgery is not disadvantaged.
· Appraisals which are based on objective measures, with a fair timeframe.
· Disciplinary records as long as disciplinary rules have been applied consistently.
· Any potential discriminatory procedures should be avoided including age-related criteria, pregnant employees and those on maternity leave, and any part-time employees just because they are part-time.
5. Seek suitable alternative employment
· Alternative employment should be actively sought until the end of the employee’s notice period.
· Employees should be made aware of all potential opportunities. It is for the employee to decide what is suitable in terms of accepting demotion and/or a salary cut.
· Sufficient detail of any new vacancies should be provided with a trial period of at least four weeks.
· All employees at risk of redundancy should be offered the opportunity to be considered for any vacancies.
6. Provide Support
· The support provided will be noticed by employees who are being made redundant and also those who are remaining with the company. Employers should be mindful that employees who have been made redundant may still be seen as representing the company including on social media.
· Employers may consider providing support in many ways including CV development and interview skills training. Employers may want to externally highlight the support that they are providing to ensure that a positive message is communicated.
· An employee who has been employed for two years has the right to reasonable time off during the notice period to look for a new job or make training arrangements.
7. Communicate with employees not at risk of redundancy
· Employers should explain the rationale behind any decisions to all employees, including how the restructure will help the company and thus provide hope to those who remain.
· Employers should conduct thorough planning and aim to ensure that any new structure is right first time.
Kerris Crook HR Consultancy can support and guide you through any redundancy situations.
Please contact me on 07753 743468 for any further information.