Redundancy is not an easy topic to discuss, but unfortunately, it is currently being discussed more widely due to the rise in utility and business costs impacting the workplace.
So, how do you ensure that you, as an employer, approach redundancy matters properly? We wanted to share some useful information about the process and how best to support your employees during it.
What is the definition of Redundancy?
Redundancy is defined as a form of dismissal whereby an employer can legally reduce the number of employees within the workforce. In the UK the employee may be dismissed for redundancy if:
- The employer has ceased or intends to cease continuing the business, or
- The requirements for employees to perform work of a specific type, or to conduct it at the location in which they are employed, has ceased or diminished or is expected to do so
** Remember that redundancy is in relation to the job and not the person employed to do the job.
How long do I have to consult?
The consultation period will depend on the number of people identified as at risk of redundancy. Although there is no minimum statutory time for consultation when fewer than 20 employees are at risk of redundancy, UK law guidance states that the consultation must be ‘meaningful’.
You must ensure that employees have the opportunity to be accompanied to any consultation meeting they attend. This can also provide them with support.
If you have more than 20 employees at one establishment, then you must not only consult individually but also collectively, with elected representatives, for these timescales:
- At least 30 days before the notification of redundancies for dismissals of between 20 and 99 employees
- At least 45 days before the notification of redundancies for dismissals of 100 or more employees
** Don’t forget that you will need to consult with all employees, even those who are on maternity or sick leave.
What do I need to tell the employee?
You must ensure that you give them the following information at the start of the consultation process:
- What is the reason for redundancies
- The number of proposed redundancies and their job roles
- The total number of employees that are affected
- The proposed method of selection (if applicable)
- The redundancy procedure that you will be following
- The method of how you will calculate their redundancy pay.
What further support can I give to employees at risk of redundancy?
There are many things that you can do as an employer to support employ
- Ensure that you have a clear plan and process so that everyone understands what is happening, this provides some assurance in an exceptionally uncertain time
- Provide regular updates and opportunities to engage
- Assign a key point of contact for any well-being and process support
- Ensure employees have access to any employee assistance programs you have available
- Provide information packs that include sources of support and job-seeking advice
- Provide suitable training on CV writing and interview techniques
- Allow those employees at risk of redundancy appropriate time off to seek and attend interviews/training.
You may also want to investigate providing outplacement support to employees, especially if you are making a number of redundancies; they can provide support such as CV writing, one-to-one career coaching, networking, or even starting your own business. Whilst this is not always affordable in a redundancy situation, you may have someone in the business with some experience to support in some of these areas.
Remember, how you as an employer manage the redundancy process as a whole will impact the employee now and moving forward within their career, if you lack support and empathy towards an employee, then they will feel aggrieved by the process and ultimately, you as the employer, they are more likely to leave the organisation with a feeling of resentment and anger.
However, if you follow a fair process and treat those at risk of redundancy with support, compassion and respect, then they will leave the organisation on good terms and although they may not be happy with the outcome, they know that as an employer you have done everything you can to support them during a very difficult time.
Remember that how the organisation conducts itself will impact the number of people who remain with you and the likelihood of them staying with you.
In the meanwhile, if you are an employer who is planning a redundancy consultation exercise and would like further guidance to ensure that you follow a fair and legally compliant process, please contact a member of the View HR team for an initial discussion as part of your planning.
