COVID19 has changed our way of life. It has been so difficult in our personal life, and our professional lives. The significantly painful side effect of Covid-19 on British industry is that many employers have seen a dramatic downturn in business which has forced them to look at making cost savings- one of these is to reduce the employee head count.
ACAS have found that more than a 3rd of employers are likely to have to reduce the head count significantly by the end of the year, with many admitting that they are unaware of the legal requirements and responsibilities around redundancies.
Making a redundancy is one of the toughest HR issues to navigate as an employer. You also need to make sure you get the process right to protect yourself from unfair dismissal claims. That is why it is always best to have professional advice to help you get things right. If you have any concerns or queries about the redundancy process, Flex can help. But in the meantime here are the headlines.
Before you start a redundancy process, it is essential to be completely sure there are no alternatives. You will need to make sure that there is no other way to solve the issue giving rise to the potential redundancy. You could consider carrying out a cost review, maybe look at benefits or bonuses that could be cut or considered reduced working hours or pay. The research you complete at this stage will also give you a good basis for the discussions you should have with your employees throughout the consultation process. Remember that even if you do find a potential solution –i.e. reduced hours or pay – you will still need to consult your employees about this. Remember the key to success in business is talking and communication with your team.
Remember the key to success in business is talking and communication with your team.
Claire baker, founder of flex consultancy
Unfortunately, despite completing the research sometimes there really does not seem to be any other viable alternative except to continue with a redundancy process. It is good practice to always be clear on your reasons why you need to make one or more roles redundant- remember it is the role which is redundant not the person. Also, it is important to note that no matter how many times we tell ourselves and our staff it is not personal it will invariably fee very personal to those directly involved and that is ok.
The next step is to determine which roles will be placed at risk of redundancy.
Whilst it is slightly simpler process if there is only 1 standalone post affected and only 1 individual it is still good practice to follow a formal redundancy process.
When you have identified and selected the posts at risk of redundancy then you need to start consulting with those affected and give the employees the opportunity to comment on and influence the process.
Please make sure at this point you are clear that the changes are just proposals for discussions rather than a foregone conclusion. COMMUNICATE WITH YOUR TEAM.
Legally the consultation process needs to start as soon as possible, so it is important to get the pool together informally and advising them of your concerns and proposals. Let them know that this is the start of the redundancy consultation (and take notes)
It is good practice to draw up the criteria that you will use to score staff against in order to determine who will be dismissed for reasons of redundancy. I would recommend that you bring a draft of the criteria with you to the group consultation meeting so that you can get staff feedback on the proposals.
Individual consultations- These are quite simply what it says on the box- Talk to your staff on an individual basis to get their initial reactions, comments and thoughts. Follow up on any suggestions in writing – your letter should respond to all points raised by the employee during the consultation and invite them to the next meeting.
The final step is to make your decision to issue the employee with notice of redundancy. You will already have discussed everything in detail at the previous meetings, so just recap the discussion and justification. Before you make a final decision, ask the employee if they want to add anything else. Listen and then have a short break to make your decision, respond to their points and, if necessary, issue a notice of redundancy. Follow this up in writing – remember they have the right to appeal your decision.
Following a redundancy procedure is a legal requirement for all businesses when considering making staff redundant. Not only does it reassure your team that you’re taking all the appropriate steps, and that you’re doing it for the right reasons, but it also mitigates the risk of a successful tribunal claim.
Finally please always approach the situation from the point of view that you’re seeking the help of your employees in a difficult time for your business, you may find that they come up with suggestions that save you from having to make any redundancies after all.
If you need advice, support or have any queries please contact us.
Get in touch on info@flex-consultancy.co.uk or give us a call on 07813363118.
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