Redundancy Procedure - Done Properly
When the time comes to streamline your business, making redundancies can be the hardest part of the process. The regulations surrounding redundancy can feel like a minefield of potential litigation.
Ensuring that the rules are followed will protect you from expensive tribunals and also make the entire procedure less emotional for those involved.
The most important thing to consider is to make sure that your employees know what is going on at all stages of the procedure. Should you fail to communicate with your employees of their representatives during this crucial process it will not only cause fear and uncertainty within the workforce, it will result in allegations of unfairness in the redundancy decisions - making certain that expensive legal proceedings will occur.
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 Whether it is because a manual operation has been superseded by technology, or simply that a particular function is no longer necessary, the job itself must disappear when the employee leaves.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.
Working Out the Criteria For Redundancy
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 - 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 an appropriate cross section of skills should help keep your workforce balanced and effective.
* Performance - you may wish to retain your hardest-working team members. Youll need documented evidence to support your decisions to avoid possible 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.
In an ideal situation, to make sure that the selection process is as fair and equal as possible, a combination of the above criteria should be considered.
Consultation With Staff
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 employee who is at risk of redundancy, detailing your reasons for the decision and arrange for a meeting to talk about the situation. If you fail to do this, it will automatically make any dismissal unfair.
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.
Providing 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.
Remember that the procedure of making redundancies can be an emotional task and can be a litigious nightmare if not done correctly and sensitively.



