First of all, you have to make sure that you can avoid redundancies. This means dismissing any freelancers or self-employed contractors, reducing overtime, avoiding active recruitment, filling vacancies elsewhere with existing employees and so on.
If you’ve come to the conclusion that there’s no other option, you’ll then need to decide who will be made redundant. But this needs to be done so fairly. You cannot decide based on pregnancy, part-time employment, age or race. It needs to be done on skills, ability, attendance, length of service and so on.
When you’ve made a decision on who, the next step is to hold redundancy consultations. This process is important to follow, because if you go ahead with the dismissal without this, the employees may have a right to contest the redundancy.
If you’re making twenty or more employees redundant within a 90 day period, you will need to follow collective consultation rules. Otherwise if this goes to tribunal, it could be ruled against you.
You then need to make sure that you give the right amount of notice to staff. It’s important to agree on a leaving date after the consultations have taken place. Here, a statutory notice period will come into play which is based on their employment length.
It can be a week’s notice for someone employed up to two years, a week for each year of their employment between two and twelve years, and at least twelve weeks for twelve years plus.
Then, the final step here is to work on the redundancy pay that will be paid on dismissal or soon afterwards. This can come under statutory redundancy pay if your employee qualifies.
It’s important to know what rates they are entitled to be paid. And this can vary based on their age and the length of their employment. If you’re not sure on what this would be, it might be best to seek advice.
You may feel like this is a simple process that you can carry out by yourself. But it can also be complicated and lead to legal issues. By working with our solicitors, you’ll make sure that your company is protected about any legal cases being brought against you. We will ensure that the process is carried out legally and appropriately.
If you’d like to hire a solicitor to oversee your redundancy process, please call us on 0203 936 9171 or send us an email to [email protected]
When you own a business it is important to be aware of the formalities of a redundancy procedure should this ever occur with one of your employees.