Top tips for Employers faced with Redundancy

The legal definition of redundancy covers situations where a business either closes a business altogether, closes a Workplace (closure of one of several sites, or relocation to a new site) or has a diminished requirement for employees to do work of a particular kind.

Tip 1

Be organised and prepared:

1. Create a business plan
2. Plan timescales
3. Have a manager responsible for overseeing the process and ensuring adherence to the plan
4. Try and keep a senior employee totally impartial to the process
5. Make sure those making decisions have authority to do so 
6. Have a delegated person whom questions can be directed to

Tip 2

The business must carefully consider the pools for selection for redundancy and record its considerations in writing. This should involve consideration of:

• What type of work is ceasing or diminishing
• What do the employees do day-to-day?
• The extent to which employees are doing similar work (possibly even those at other locations)
• The extent to which employees' jobs are interchangeable
• Whether the selection pool was agreed with the union or employee representatives if applicable

Tip 3

Meaningful consultation is not a tick box exercise. It means that the decision must not already be made and there is scope for alternative suggestions to be put in place.

Tip 4

Remember that there are special protections for any affected individual who may be pregnant or on maternity leave. They have priority for any suitable alternative vacancy after selection for redundancy.

Always make reasonable adjustments with your scoring in a selection matrix for those with a protected characteristic, such as disability, if it or something arising from it could adversely affect the score e.g. attendance records.

Tip 5

If a business has 20 or more proposed redundancy dismissals in a 90 day period, consultation must be for a minimum of:

• 45 days where there are 100 or more dismissals
• 30 days for 20-99 dismissals

You must have appropriate representatives prior to the first dismissal and an HR1 form must be sent to the Redundancy Payments Service (RPS).

Tip 6

It is important to acknowledge that the workforce are likely to feel anxious and worried during this period. Be sure to assist in any way you can by providing regular updates, information and support. 

If you would like to discuss redundancy issues further, please do not hesitate to contact our Employment and HR team by emailing law@jcpsolicitors.co.uk or call 03333 208644.

This content does not constitute legal advice and is for general information purposes only.