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.
Ensuring that the rules are followed will protect you from expensive tribunals and also make the entire procedure less emotional for those 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 Whether it is because a manual operation has been superseded by technology, or simply that a particular function is no longer necessary, the job itself must disappear when the employee leaves.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 the requirement to make redundancies has been determined, there are a number of stages which the employer will need to go through in order to meet their obligations to the employee.
Establishing The Criteria For Redundancy
The objective of redundancy should be to create an effective, streamlined workforce that are best able to take your business forward. Establishing well defined criteria for selection is the most effective way of ensuring that all employees are treated equally, and their benefit to the company is properly assessed. The criteria you use may include:
* Adaptability - particularly if your company is moving into a new area or market in order to move forward, you may need to retain those staff who are most comfortable 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 " 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 an appropriate criterion, but only if applied fairly and consistently. Remember that you should not use lack of attendance due to maternity, paternity or adoption leave as a decision regarding redundancy.
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 you are planning on making more than 20 positions redundant within a 90-day period, you will also need 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.
Offering 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.
Remember that the procedure of making redundancies can be an emotional task and can be a litigious nightmare if not done correctly and sensitively.
Ensuring that the rules are followed will protect you from expensive tribunals and also make the entire procedure less emotional for those 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 the requirement to make redundancies has been determined, there are a number of stages which the employer will need to go through in order to meet their obligations to the employee.
Establishing The Criteria For Redundancy
The objective of redundancy should be to create an effective, streamlined workforce that are best able to take your business forward. Establishing well defined criteria for selection is the most effective way of ensuring that all employees are treated equally, and their benefit to the company is properly assessed. The criteria you use may include:
* Adaptability - particularly if your company is moving into a new area or market in order to move forward, you may need to retain those staff who are most comfortable 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 " 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 an appropriate criterion, but only if applied fairly and consistently. Remember that you should not use lack of attendance due to maternity, paternity or adoption leave as a decision regarding redundancy.
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 you are planning on making more than 20 positions redundant within a 90-day period, you will also need 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.
Offering 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.
Remember that the procedure of making redundancies can be an emotional task and can be a litigious nightmare if not done correctly and sensitively.
About the Author:
Katherine Wiid is a specialist 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 www.recrion.co.uk.
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