The greatest repercussions businesses face during a crisis or pandemic is an increase in redundancy since they are forced to make difficult decisions. However, making an employee redundant needs a lot of understanding, and employers should ensure they follow the right channels and conduct it with great care.
Going through a redundancy process can be overwhelming and can even lead to expensive penalties if the required laws are not followed. Looking for redundancy alternative options and consulting thoroughly with those at risk are some of the important steps that help to do things right.
Redundancy will bring up some tricky questions. Like when it is good to recruit a person after redundancy and whether you can make a person on maternity leave redundant.
To help employers, HR professionals and businesses worldwide, this article has covered the working principle of redundancy in great detail for correct processes and complaints.
However, you need to search for an HR advisor, redundancy advice for employees or a solicitor if you need legal advice.
Also, this step by step guide will take you through all processes involved in redundancy. And how to tackle some of the difficult questions employers find themselves answering when making redundancies.
What is Redundancy?
Redundancy is when an employee is dismissed formally from doing certain work by an employer due to different reasons, like the business closing or the reduction of the workforce.
Many people always confuse redundancy and firing someone.
Firing someone involves termination of a working contract where an employer asks the employee to leave because of misconduct like sleeping, fighting and stealing at work.
An employee is qualified for redundancy only when he or she has worked in that particular company for not less than 2 years. It is important to follow the correct redundancy process. Since non-compliance can lead to unfair dismissal claims, employment tribunal or formal complaints.
Being redundant is upsetting, confusing, and stressful because you are left with financial difficulties that threaten your peace and your family. Therefore, it is good to look for an expert to offer redundancy advice for employees. To ensure you get your entitled redundancy pay. Graham Evans & Partners in Swansea have experienced redundancy solicitors. They provide advice to employees of all levels on every stage of redundancy proceedings.
You will have enough financial security if you get the full redundancy pay since it will buy you time to search for a new job.
Working Process of Voluntary Redundancy
Another option is voluntary redundancy, where an employer offers a package (contain mostly financial incentives) to the employee to exchange with them, calling off their contract.
Generally, voluntary redundancy is provided to reduce all costs without compulsory redundancy. Which will most of the time, shake engagement and morale. Voluntary redundancy is the best and less negative way to make someone redundant.
Also, it offers a platform for people who wish for redundancy instead of making employees redundant yet they wish to keep their job. It is your duty as an employer to decide on the redundancy application to accept or reject.
Therefore, you are not obligated to accept any voluntary redundancy.
Ensure there is no other alternative before you begin your redundancy process. When you are sure there is no other way to resolve the issue leading to potential redundancy, you can proceed.
Factors to Consider When Checking for Viable Alternatives
- Reducing pay or working hours
- Look and eliminate bonuses of benefits that could be cut
- Carry out a cost review
At this research stage, you will have ample time to discuss the redundancy matter with your employees. Employers should consult with their employees even after finding alternative solutions to apply on employees’ terms and conditions.
However, if you can’t get any alternative and cut down your workforce is the only solution. It is important to follow the below steps to exercise fairness.
Correct Steps for Carrying out Redundancy
- Have clear reasons
- Identify the role to be at risk of redundancy
- Ensure people know their job is at risk of redundancy
- Come up with a selection criteria
- Conduct an individual consultation meeting
- Selecting criteria scoring
- Second consultation meeting
- Put into consideration alternatives
- Redundancy final and dismissal meeting
- Appealing rights
Straightforward cases can take up to 2 weeks to complete the redundancy process. While more complex cases can take up to 4 weeks or even longer.
It is important to ensure your employee or employees going through redundancy are involved in the whole process. Note that you are obligated to still search for alternatives after you have given out their dismissal letter.
Reasons for Following Redundancy Procedure
It is a legal requirement for every business to follow redundant procedures when looking forward to making staff redundant. It reassures potential redundant staff that you have a valid reason, follows the right steps, and mitigate tribunal claims.
Talking to your employees when you are planning to make them redundant can sometimes help you get the alternatives you were searching for. Hence doing away with redundancies.
Shirley Mist has been involved in fashion and design for many years. She has also written extensively for many online publications. She currently writes for The Tribune World and is a valued member of our team.