Redundancy Training: Options for Employers

First of all even if you feel secure in your job you should identify that you do have a potential redundancy situation.

Redundancy happens when an employer no longer requires a role or roles of the employee, either when there is a reduction in the number of people required to fill a role or roles or when a business is closing or relocated.

It is important to know that redundancy is about the needs of the organisation and the change in the need for the role. It is not about the performance of an individual or any other failings of that individual.

If you are aware that a redundancy situation may occur, plan thoroughly and timetable what actions you need to take. Take advice to prevent the risk of expensive and time consuming claims. Redundancy exercises take time to carry out properly and can cover many weeks.

Identify the cost of contractual notice or payment in lieu of notice and redundancy payments. In collective redundancies, formal notice is usually unable to be given until the prescribed periods have elapsed. Statutory redundancy payments are based on length of service, age and salary maximum £330 per week and can be as much as £9,900. Employees may also be entitled to more if there is a contractual right to an enhanced redundancy payment or there is a custom and practice of paying higher rates.

carry out consultation. Collective redundancies require the giving of specific written information and consultation with trade union/employee representatives over prescribed periods (a maximum of 90 days) before any employee can be given notice. In addition (and in any event) individual consultation will need to take place.

Redundancy involves face to face meetings.

Collective consultation must begin at an early stage. Actions are taken which may take the employer on an irreversible route to redundancy.

The right terminology to use are as follows: proposed, envisaged and intended to show that nothing is set in stone. Act consistently with this terminology. All relevant documents are required to be disclosed in any subsequent Employment Tribunal claim. Lists of names identifying those to be made redundant, inappropriately worded e-mails or future organisation charts are traps for the impatient and unwary employer.

Employers often focus on those likely to be leaving and forget those employees who are staying. Redundancy exercises are about making an organisation run efficiently and yet we lose sight of the people who are going to make that a reality.

How will you communicate with the employees who are staying

what you will say

how you can make the message for them positive.

Avoid the drip-drip effect

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