In the current climate it is inevitable that some businesses will not be able to maintain the existing staff levels. However making job losses is never easy and any redundancy programme should be implemented with care.
Not only are there legal and logistical issues to consider, but it can also be upsetting for both sides as it may mean saying goodbye to some long-standing and loyal workers. Here are some guidelines for businesses in this position:
- Be open minded
Discuss selection with the wider workforce. Employees may have ideas about how to avoid future redundancies and reduce the need for dismissals.
- Have a plan
Plan thoroughly and have a timetable. Make sure you build in plenty of flexibility to ensure all employees at risk have the opportunity to express their views.
- Look at alternatives
You may be able to avoid redundancies by temporarily shortening working hours. Most employees would be happier taking a small pay cut than losing their job altogether. Ask for volunteers before you consider compulsory redundancies.
- Keep talking
Consultation is the cornerstone of any redundancy procedure. Collective consultation with a union or employee representatives is required where you are proposing to dismiss 20 or more employees within a period of 90 days. Consultation with individuals is required irrespective of numbers.
- Make it meaningful
Don't just go through the motions - consultation should involve an exchange of ideas not a pre-determined result! Talk in terms of proposals – nothing is concrete until consultation has concluded.
- Don't make it personal
Make sure you use objective non-discriminatory selection criteria to identify those employees at risk. Criteria could include qualifications and skills and disciplinary record. Avoid subjective criteria such as 'attitude'.
- Take advice
Making redundancies without going through the proper procedures can lead to expensive employment tribunal claims. Take professional advice at the outset to ensure that you comply with the rules.
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