In today’s uncertain economic climate many businesses face the possibility of having to reduce their operating costs by running a redundancy process. Aside from being an unpleasant process to manage, it can also be a legal minefield. Therefore it’s vital to follow the correct procedures, outlined here.
1. Preparation
This includes evaluating whether redundancy is actually necessary before starting the process. You should also identify your time frame and prepare the relevant documentation.
2. Selection
This includes selecting the pool of people under consideration for redundancy. You will also need to define the criteria to be used in selecting those individuals. It’s important that the standards remain objective and can be applied equally and justly across the workforce. For instance, experience, capability, relevant skills and competence are fair criteria.
3. Individual consultation
There are legal time frames regarding consultation, depending upon the number of people being made redundant. No matter the situation, it’s important to clarify why an individual has been selected and to contemplate alternative employment in the company.
4. Notice of redundancy and appeals
Always remember to write to your employee to notify them of the dismissal and allow them the right of appeal.
The termination process
All employees in the UK with more than two year’s service qualify for a statutory redundancy payment. Remember to provide the employees with a written record of how the statutory redundancy payment has been determined.
If you are uncertain about any legal aspects of a redundancy process, it is best to seek out legal advice.
