Redundancy Tips for Employers
There are 3 main redundancy situations:
- Closure of business as a whole
- Closure of a particular workplace where the employee was employed
- Reduction in the size of the workforce
There is only a redundancy situation where the employer wants fewer individuals doing a particular job. There may still be the same amount of work to be done, but there must be diminished requirements.
Why have a fair process?
Although ‘redundancy’ is theoretically a fair reason for dismissal, proper procedures must be followed to minimise the risk of a ‘genuine dismissal by way of redundancy’, being found unfair. A fair process also reduces the risk of a discrimination claim.
What should the employer bear in mind?
- Consultation and information. As much notice as possible should be given to any relevant unions and individuals.
- Where 20 or more employees are being dismissed at one establishment within a 90 day period:
• Statutory provisions provide for specific consultation requirements with appropriate representatives; and
• Notice must be given to RPS (Redundancy Payments Service) on form HR1
- Work out a reasonable timetable and share it with the workforce.
- Consider alternatives to redundancy flowing from consultation, including alternative employment.
- Consider whether voluntary redundancies would be appropriate before commencing compulsory ones.
- Where selection is required, objective selection criteria should be drawn up, explained and used fairly and without bias.
- Provide details of redundancy pay calculations.
- Give proper notice of dismissal even though the dismissal is by reason of redundancy.
- Allow for appeal against selection for redundancy.
- Consider providing support to help redundant employees find new jobs
Throughout the redundancy process remember that communication is the key.
Our team will be happy to speak to you about the redundancy process, providing advice and guidance should you need it. Please get in touch.