When it is necessary to streamline your business, making choices regarding redundancies can be the most difficult part of the procedure. The regulations concerning redundancy can seem like a potential minefield of possible litigation.
Ensuring that the rules are followed will protect you from expensive tribunals and also make the entire procedure less emotional for those involved.
The most important thing to consider is to make sure that your employees know what is going on at all stages of the procedure. Should you fail to communicate with your employees of their representatives during this crucial process it will not only cause fear and uncertainty within the workforce, it will result in allegations of unfairness in the redundancy decisions - making certain that expensive legal proceedings will occur.
It should also be remembered that it is the job that is made redundant - not the person. Regardless of the job description - whether it was a manual operation superseded by technology or a position that is no longer required due to other situations, the job itself must cease to exist when the person leaves. Regardless of what may be the message you have been given, it is legally okay to employ new people when others have been made redundant. What you must ensure, though, is that these new jobs fulfil different requirements and that the skills required do not exist within your present workforce.
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 main reason why redundancy should be considered is so that your workforce is as effective and streamlined as possible to ensure the success of your business. Deciding upon clearly defined selection criteria is the fairest way to make sure that all employees are treated equally, especially in regards to the way in which they can bring benefit to the company. Some suggested criteria you can consider include the following:
* Adaptability - especially if your organisation is moving into a new area or market in order to move forward, you will need to retain the members of your staff who are comfortable with change and have the ability to adapt to new circumstances.
* Skills - keeping a good cross section of skills can 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 a valid criterion only when it is applied fairly and consistently. Remember that it is not fair to use lack of attendance due to maternity, paternity or adoption leave.
Ideally, in order to ensure that the selection process is a fair and equal as possible, a combination of the above criteria should 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 will quite often run rampant during times of redundancy. As a result, you should be prepared to be as open and honest as possible in order to avoid unnecessary confusion. In particular, inform those at risk at the earliest possible stage of the reasons for the redundancies, the positions and departments likely to be affected, the approximate number of employees at risk and what criteria you will be considering in the selection procedure. It is also important that you keep them informed of the time line of events.
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.
If you continue to communicate openly with both at risk staff and those who will be staying behind throughout the process, it will help to keep negative emotions to a minimum and reduce the possibilities of claims of unfair dismissal.
Providing Assistance
Even though you are not legally required to do so, it is a good idea to assist those you have selected for redundancy in as many practical ways as possible. This could mean offering assistance in obtaining alternative employment, CV writing guidance and interview technique or even financial planning assistance. Acting this way will assist both you and your former employee in maintaining good relationships and will also reduce the chances of legal action.
Making redundancies is a difficult and potentially highly emotional task, fraught with complex legal obligations. - 16738
Ensuring that the rules are followed will protect you from expensive tribunals and also make the entire procedure less emotional for those involved.
The most important thing to consider is to make sure that your employees know what is going on at all stages of the procedure. Should you fail to communicate with your employees of their representatives during this crucial process it will not only cause fear and uncertainty within the workforce, it will result in allegations of unfairness in the redundancy decisions - making certain that expensive legal proceedings will occur.
It should also be remembered that it is the job that is made redundant - not the person. Regardless of the job description - whether it was a manual operation superseded by technology or a position that is no longer required due to other situations, the job itself must cease to exist when the person leaves. Regardless of what may be the message you have been given, it is legally okay to employ new people when others have been made redundant. What you must ensure, though, is that these new jobs fulfil different requirements and that the skills required do not exist within your present workforce.
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 main reason why redundancy should be considered is so that your workforce is as effective and streamlined as possible to ensure the success of your business. Deciding upon clearly defined selection criteria is the fairest way to make sure that all employees are treated equally, especially in regards to the way in which they can bring benefit to the company. Some suggested criteria you can consider include the following:
* Adaptability - especially if your organisation is moving into a new area or market in order to move forward, you will need to retain the members of your staff who are comfortable with change and have the ability to adapt to new circumstances.
* Skills - keeping a good cross section of skills can 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 a valid criterion only when it is applied fairly and consistently. Remember that it is not fair to use lack of attendance due to maternity, paternity or adoption leave.
Ideally, in order to ensure that the selection process is a fair and equal as possible, a combination of the above criteria should 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 will quite often run rampant during times of redundancy. As a result, you should be prepared to be as open and honest as possible in order to avoid unnecessary confusion. In particular, inform those at risk at the earliest possible stage of the reasons for the redundancies, the positions and departments likely to be affected, the approximate number of employees at risk and what criteria you will be considering in the selection procedure. It is also important that you keep them informed of the time line of events.
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.
If you continue to communicate openly with both at risk staff and those who will be staying behind throughout the process, it will help to keep negative emotions to a minimum and reduce the possibilities of claims of unfair dismissal.
Providing Assistance
Even though you are not legally required to do so, it is a good idea to assist those you have selected for redundancy in as many practical ways as possible. This could mean offering assistance in obtaining alternative employment, CV writing guidance and interview technique or even financial planning assistance. Acting this way will assist both you and your former employee in maintaining good relationships and will also reduce the chances of legal action.
Making redundancies is a difficult and potentially highly emotional task, fraught with complex legal obligations. - 16738
About the Author:
Katherine Wiid is a specialist in employment and redundancy and has written many articles specifically about the complex Redundancy Selection process. For further information on Redundancy Procedure, check out the website.
