Where the employer has considered alternative measures to avoid the redundancy, and the redundancy situation still exists, then the following steps will need to be taken.
When does redundancy apply?
Redundancy applies when the business is due to close, or a location operating within the business is closing. It can also apply to where there is a diminished need for employees to carry out a particular type of work e.g. there is less work available.
Once it is determined that redundancy applies, it is important to select an appropriate team to work on the redundancy project e.g the senior management team, Human Resources, and line managers. Essentially it is the people that understand the operation and how a change in the business impacts the workforce.
What employers should do before consultation starts
- Decide who is in the selection pool
- Assess the employees in the selection pool using the selection criteria
- Decide the timing of the redundancy consultation
- Prepare letters
- Allocate time in diaries
- Prepare redundancy costs including redundancy payment* and notice pay
*Redundancy pay is statutory; however the employer may have an enhanced redundancy pay policy.
Individual consultation (under 20 employees)
Affected employee(s) should be invited to consultation meetings throughout the process. The number of consultation meetings required will vary dependent on the business, the individual and redundancy situation. At the meeting the following may be discussed:
- The redundancy situation and business reason
- The selection pool and criteria
- The opportunity for the employee to ask questions
- To discuss alternative solutions
The meeting should take place in a confidential environment and allow sufficient time for the employee and company representative to discuss the matter in full. If there are questions to answer or alternative roles available then further meeting(s) should be arranged to answer questions, or to discuss the alternative role(s).
The consultation meeting is a formal meeting and a record of the agenda, discussions and actions, along with attendees should be noted.
Collective consultation (above 20 employees)
Where the employer is looking to dismiss 20 + employees under redundancy, the duty to consult collectively is applied. No redundancy decision is made until the full collective consultation is concluded.
The employer must elect representatives, either with Trade union or employee representatives. Consultation is expected to longer form collective consultation and depends on the numbers affected.
The employer is required to notify the government’s Redundancy Payments Service (RPS) and complete the necessary documentation.
As with the individual consultation a full programme is required to discuss the potential redundancy.
In our ‘Redundancy Special’ week at Nockolds HR, we will be taking you through a week of redundancy related articles which outline each stage of the redundancy process. Coming up later this week is the final article:
- Closing the redundancy and providing outplacement support
Please contact us via email enquiries@nockoldshr.co.uk or call 0345 6460406 to speak to an experienced HR Consultant. Nockolds HR – Restructures and Redundancy