Handling redundancy correctly takes time, attention to detail and legal compliance.
Avoiding Costly Tribunals
Dismissing employees as redundant when their services are no longer required.
Most often, redundancy plans begin with the employer no longer needing work of a particular kind carried out or diminishing work load at a particular location. Regardless of the volume or type of job losses, consultation with employees is key to moving forward with a redundancy process.
Employees have rights and will often be entitled to compensatory pay (known as redundancy pay) if they’re to be made redundant.
There are more stringent rules where there are 20 or more employees at risk of redundancy, in which case the consultation period must last at least 30 days; and where there are 100 or more employees at risk this increases to a 90-day consultation period.
A redundancy consultation process must be meaningful and have the aims of trying to avoid redundancies; investigating any interest in voluntary redundancy; identifying the selection pool; setting selection criteria; and ensuring a fair process for redundancy selection where there are multiple employees to choose from. Part of this consultation process is also to identify jobs that are suitable alternatives to redundancy.
Depending on the nature of business, the employee status and other varying factors, you will have to put a package of pay and/or benefits in place for employees. This can include:
- Redundancy pay
- Pay in lieu of notice
Employers also need to consider whether the employees selected for redundancy are to work their contractual notice or alternatively to make a payment in lieu of notice or, where provided for contractually, place them on garden leave.
Statutory redundancy payments vary due to employee age, length of service and pay.
How Citation can help
From the very minute that you consider redundancy, Citation can provide advice and support. Whether it’s to begin the process or not, when to begin it or what procedures to implement first, our experts can answer any redundant questions you may have.
If you’re considering redundancy within your company, try our Redundancy Calculator to work out how much pay you may be expected to pay out. Note: this is a basic calculator – as a client, you’ll have access to much more complex calculators for greater accuracy based on your exact circumstances.
As a client of Citation, you will gain access to a wide variety of powerful online applications, including Employee Management, Online Training and Risk Assessment Creation