Employers Guide to Making Redundancies

Employers Guide to Making Redundancies

THE EMPLOYER’S GUIDE TOMAKING REDUNDANCIES ELAS TOPIC GUIDES

HEALTH & SAFETY MANAGEMENT CONSULTANTS

HEALTH & SAFETY MANAGEMENT CONSULTANTS

THE EMPLOYER’S GUIDE TO MAKING REDUNDANCIES

If your organisation is in the unfortunate and uncomfortable situation of having to reduce staffing levels, redundancies are often the routemost organisations take. Redundancies are one of the most contentious pieces of employment law. An innocent mistake could cost your organisation thousands of pounds should an employee file an employment tribunal claim on the grounds of unfair dismissal and/or failure to consult . If you are thinking about making redundancies, then we advise that you seek professional employment law guidance and support to double check that you are carrying out the process fairly and objectively and in accordance with the legislation. This is something we continuously stress to our clients. This guide contains an overview of the redundancy procedure. We recommend that you read the procedure carefully so that you fully understand your role. Don’t worry if there is something that you don’t understand; that’s what we’re here for!

Business Rationale Make sure you have a genuine business rationale should your organisation be wanting to make redundancies. The 3 rationales are : • Closure of the entire business • Closure of the entire workplace • A diminishing need for employees to carry out work of a particular kind Identify Your Employees Identify those employees who are at risk of redundancy due to the downturn in work. You also need to identify the number of employees that are likely to be made redundant. Don’t forget that you need to justify your choice of employees . For example, consideration needs to be made as to employee job descriptions, the interchangeability of job roles as well as the extent to which other employees are carrying out the same or similar work to ensure they are in the correct pools for selection.

Redundancy Matrix Your organisation will then need to score the employees in each pool using a scoring matrix. What this looks like is completely dependent on your business and its operations. Factors that can be included in the matrix can include work quality , quantity of work , timekeeping and even absence records . Please remember that scoring needs to be fair and objective . Financial Costs Howmuch are redundancies going to cost your organisation? In addition to statutory redundancy pay, you will also need to pay notice pay , accrued holiday pay as well as the cost of salary whilst the consultation process is taking place. Dismissing More Than 20 Employees? If you are looking to make 20 or more employees redundant over a 90-day period, then a more strict and lengthy redundancy process is needed. The penalties for not observing the correct redundancy process are so severe that it is crucial you get it right.

Have You Thought About The Alternatives To Redundancies?

How Can the ELAS Group Help? At The ELAS Group, we’re the experts of choice for thousands of organisations nationwide when it comes to their Employment Law and HR. Our team of employment law consultants are available 24 hours a day as we realise employment issues can crop up at any hour. As a business owner, you never switch off – and neither do we! Whether you need a second opinion to check you’re carrying out the redundancy procedure correctly, need help with your redundancy matrix or are even facing a claim of unfair dismissal; we’re here to help .

Similar to the redundancy process, you can’t implement these changes without consultation and agreement from your employees. However, if your current contracts of employment already include such clauses to cover these options, your organisation may not need an employee’s express consent. Keep Your Employees Informed Reducing an employee’s working hours, employee. Therefore it’s vital to ensure that you promote open communication with your employees throughout the process. Not only will this help your employees understand the position your organisation is facing and the reason for the chosen decision, it will also provide themwith the opportunity to ask any questions should they have any. Additionally, it will help maintain positive employment relations. whether through redundancy or an alternative, is a scary process for any

Redundancies should be viewed as a last resort should your organisation be looking to reduce staffing levels. There are other alternatives that can be explored including: • Short time working: This is where an employee’s hours are reduced or they’re paid less than half a week’s pay. • Flexible working: This can include part time or zero-hour contracts. • Re-locating employees to another role: Is there another job role that your employee could fulfil? • Temporary period lay off: This is not a redundancy but suited to a temporary cessation or reduction of work. • Negotiating with staff to reduce pay.

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HEALTH & SAFETY MANAGEMENT CONSULTANTS