What Are The Stages of Redundancy?
The Decision To Make A Redundancy
Attempting to avoid mandatory redundancies demonstrates that your organisation has gone to great lengths to retain its staff employed. The following are some examples of techniques to avoid redundancies:
- Getting rid of any self-employed contractors or freelancers who work for your firm
- Looking for submissions from employees who want to work more flexibly.
- Restricting the company’s recruitment process
- limiting or prohibiting overtime work
- Working part-time (fewer than the typical number of hours per day/week) or temporary layoffs
- Using existing personnel to fill vacancies elsewhere in the company
If you’re giving someone alternative work, there are a few conditions that must be met in order for the offer to be valid
- The offer should be written and unconditional.
- It must happen before the employee’s present employment contract expires.
- It must demonstrate how the new position differs from the previous one.
- The employee must be approached with the suggestion; they should not be required to apply.
- Within four weeks of the old employment finishing, the new job must begin.
Employees who accept alternative work get a four-week trial period to evaluate if it’s right for them. They can still claim redundancy pay if you both agree it isn’t.
Notifying The Employees
You’ll need to perform redundancy consultations once the employees have been chosen. Employees may have a legal claim to oppose the redundancy with the employment tribunal on the grounds of unfair dismissal if these redundancy discussions are not held.
It is a legal duty for your organisation to fulfil the collective consultation regulations if it is laying off 20 or more employees within 90 days. It is not necessary to follow these criteria if your organisation makes fewer than 20 layoffs. However, consulting with your employees is a good idea since if the matter is contested and taken to an employment tribunal, the tribunal may rule against your company.
If you’ve exhausted all other options for avoiding redundancy and still believe it’s necessary, you’ll need to determine which employees will be made redundant.
When choosing which employees will be laid off, it’s critical that the cause for the layoff does not come within the unjust selection criterion. Pregnancy, fixed or part-time employees, or someone’s age or colour are all examples of unjust selection criteria.
You must guarantee that you pick employees fairly and without discrimination when making them redundant. The following are some of the fair selection criteria:
- Skills, qualifications, and natural abilities of an employee
- Performance standards and standards of work
- Record of disciplinary action
The Redundancy Procedure Ends
During the redundancy process, you must give an employee notice and agree on a departure date once the redundancy consultations are completed
You must provide employees at least the statutory notice time when deciding on the departure date. The length of the notice period is determined by how long the employee has been with the organisation.
- You must give at least one week’s notice to someone who has been at the company for one week to two years.
- Anyone who has worked for the company for two to twelve years must give a week’s notice for each year worked.
- Finally, everyone who has worked for the organisation for more than 12 years is required to give at least 12 weeks’ notice.
You can, however, offer remuneration in place of notice to allow a member of staff to leave sooner than this date.
If you need HR support from a company that understands the needs of your business, contact us today. At Harwood HR we can support your business, help you to grow and promote your employees’ talents. Our UK-based team offers a range of HR support services and advice for SME businesses, including outsourced HR support.