Steps to ensure a fair redundancy process
Sadly, for many going through a redundancy process has been a necessity due to needing to save on costs or to restructure the organisation to make it fit for purpose. I always say to my clients that they should treat their staff who have been put at risk of redundancy the way they would want to be treated themselves. Most employers do show empathy and provide the right support needed when they are turning that person’s life on its head; you know what you need to do that’s right for your business but my word, does it hurt … and it should! I also always say, ‘if you aren’t hurting, you shouldn’t be doing it’ and by ‘doing it’, I mean being the one who holds those redundancy consultations.
Putting the emotional bit aside, employers have legal obligations during redundancy processes and we’ve covered off some steps below to ensure this is done fairly:
· Make sure it is a redundancy situation (remembering the definition of redundancy):
o Where a company has ceased or intends to cease
o Where the requirements of the business will change/diminish e.g. the business needs less people because sales have reduced
· Ensure the reason/justification for redundancy is robust – e.g. don’t manufacture a redundancy situation to get rid of a bad-performer
· Look at all other options first – e.g. could you reduce hours/pay for some staff or across the board?
· Fairly select roles at risk – e.g. ‘take out’ the person performing in that role, can the business continue without that role in situ?
· Carry out meaningful consultation – e.g. give due consideration to any suggestion made by the employee
· Follow a fair process to dismiss – if you don’t have a redundancy policy, follow ACAS
· Check your policy and make sure you adhere to it – do you offer any enhancements?
· Give sufficient notice of redundancy – a common mistake by employers as they think the person ‘only has to give one month’s notice’, however when the Company is giving the notice, it is often a different period, this is based on service with your organisation.
· At the end of the process, we recommend you follow your policy (if you have one) as it could make it mandatory for an appeal option.
If we can help in any way,