Managing Redundancies

Breaking the news


When announcing redundancies, create a clear and consistent message to relay to staff and bear in mind that the reaction of most people will be to panic and assume it will affect them. To prevent valuable skills and knowledge flooding out of the organisation, ensure any planned financial retention arrangements and career transition support is communicated at the same time as news of job cuts.


Explaining the process


Clearly explain the business reasons behind the decision to make the redundancies, the selection criteria to be used, the timelines involved and severance arrangements.


Communication should be formal and regular, whether delivered via news bulletin or face-to-face. Even if you have little to say, say it. For example, if you're hoping to generate enough voluntary redundancies, but aren't yet sure if you will need to make compulsory redundancies, far better to say a decision has yet to be taken and when it will be made, than nothing at all. Any silence is likely to be interpreted as the worst-case scenario, impacting negatively on morale and productivity.


Ensure line managers and supervisors are briefed in advance and given support to prepare for the questions that they will be asked. Provide coaching where possible, so that they are equipped to discuss the announcement and deal with any emotional fallout.


Maintaining performance


While most redundancy packages or compromise agreements might be enough to keep people in their roles until the cut-off date, it won't be enough to keep them motivated to perform. To prevent a major dip in customer service and productivity, try and make anyone selected feel like it's an opportunity to move onto better things - not the end of their world. Providing a budget for career counselling, to help individuals think about and plan their future, will prove a sound investment.


Supporting leavers


Support to help employees secure a new future can range from providing access to valuable resources during work time, to bringing local employers or recruitment agencies on site to advertise current vacancies. You might also consider running CV-writing and self-employment workshops or work with a dedicated outplacement provider to offer one-to-one support and keep their job search on-track.


The benefits to the business, in terms of reducing the cost of lost productivity, will more than outweigh the costs. It will also send a very positive message to remaining employees should they fear redundancy in the future.


Working with unions


The normal reaction of the unions will be to resist any loss of employment and challenge the selection criteria. Your role is to recognise that union representatives are just as, if not more, likely to be approached by employees seeking reassurance about their future. Therefore, involve them in the briefing process and provide them with the same information and support to answer employees concerns and worries as managers. By giving union representatives an opportunity to access information and become a part of the support process, you will help them to help address any employee concerns or worries.




Plan ahead


Although pressure to make quick job cuts may be intense, step back and think about how best to retain business critical skills and people, without incurring unfair dismissal claims.


Set a timeline


As far as possible, create a clear timetable of events and stick to it. The more clarity you can provide during this time of uncertainty, the less people will be prone to panic.


Support managers


Brief line managers and supervisors ahead of making any announcements and help them to develop answers to any questions they anticipate being asked by employees.


Provide reassurance


Don't assume that those employees not directly affected by redundancy won't take fright and take flight. Encourage the senior management team to reassure critical people.


Engage survivors


Maintain regular communication with employees across the business after the exercise is complete, to address concerns about their role and the future of the company.


The procedure for carrying out redundancies is broadly as follows:
Employers must consult with all employees who may be affected by the proposed redundancies giving as much warning of the impending redundancies and ensure a fair procedure is followed.


This procedure must comply with the minimum requirements regarding dismissal set out in the statutory Dismissal and Disciplinary Procedures. A failure to follow these statutory requirements will make the dismissals automatically unfair.


Adequate information regarding the reasons for the proposed redundancies must be given in good time in writing to allow employees to respond.


Consideration must be given to any points made by employees and throughout the process consider whether there is suitable alternative employment that may be available for the employee.


It is essential that a fair and objective selection process is agreed and applied. This is in three stages:

• the selection of the pool of employees from which redundancies will be made;
• the selection criteria to be applied to them; and
• the manner in which the selection criteria will be applied.

Selection Pool


Consider employees who are doing the same or similar work as the group from which it is first considered that redundancies will be made or whose skills are interchangeable from one department (or establishment) to another. Also consider those working on different shifts but who essentially are carrying out the same work.


Selection Criteria


Employees should be assessed against selection criteria and allocated marks for each one. The marks may be weighted according to the importance of each criterion to give an overall mark for each employee. The scores must be applied in a fair and objective manner.


Consultation with the Employee


The employee should be invited to a first consultation meeting at which the individual should be informed that their role is ‘at risk´ of redundancy. 


Particular care should be taken to avoid giving any impression that a decision has already been made. The employee should be informed as to the reasons for needing to make redundancies and should be asked to consider whether there are any options as alternatives to redundancy that they would like the company to consider before making a decision on the issue. Employers should also inform the employees that they will consider whether there are other opportunities or vacancies which can be offered to the employee by way of suitable alternative employment.


After an adequate period of consultation a second meeting will be held and if there are no alternatives to suggest and other issues have been adequately dealt with then the employee should be informed that their role is redundant and an explanation given to them as to what they will receive by way of severance pay. If there are any alternatives to consider, then it may be necessary to adjourn to reconvene for a third time to consider the employee’s proposals.


Where employees are in a ‘pool´ for selection purposes they should be informed of the scores that they have been given and should be given an opportunity to challenge those scores prior to any decision on their role being made.


Employers should not forget to offer the individual the opportunity to appeal against the decision and should follow up the final meeting in writing confirming the decision.


Every employee who is put at risk of redundancy and indeed many others who are not will inevitably be unhappy. If, however the process is managed properly then they will hopefully recognise that they are being treated fairly. This is important not only in mitigating the risk of a tribunal claim but also maintaining the morale of those who remain.

Preparing for Swine Flu

The swine flu pandemic could be highly disruptive to your business. 

There was a 50 per cent increase in new cases of swine flu in England in the week ended 3 October.  The Health Protection Agency estimates there were 14,000 new cases in England that week, compared with 9,000 the week before.

The largest increase in cases was seen in the North West and Yorkshire and Humber. The majority of cases continue to be mild, although it has proved more severe in a small number of cases.

 The government expects a big surge of cases in the autumn and estimates that, at it's peak, 15 - 20% of the workforce could be absent from work.


This is a brief summary of some of the legal challenges which pandemic swine flu may present for employers with brief guidance on how to address these issues and links to some of the most important sources of guidance the government and NHS have produced.

Business continuity planning

The adverse effects on an employer from a pandemic may come from a range of sources, particularly:

• large numbers of simultaneous staff absences, 
• absences amongst key personnel, 
• reductions in customer demand,and 
• difficulties amongst suppliers in meeting normal service standards. 

Some of these lie outside your control you need to make contingency plans, or tailor those already in place.


Practical steps might include:

• identifying a 'pandemic coordinator' and / or team responsible for response planning;

• identifying the critical activities undertaken by the business and those employees, suppliers etc who support them;

• considering how those activities might be maintained in the event of significant absences (e.g. recruiting an additional pool of workers, or training staff to perform different functions); and

• establishing an emergency communications plan.

The government has developed a checklist to assist organisations with their business continuity planning.


Communication


None of the steps an you take will be effective if they are not adequately communicated. Once a contingency plan has been drawn up, an you needs to communicate it clearly to the whole workforce, but in particular to the employees who are likely to be called upon to implement it.


You also need to communicate with staff about the health risks, summarising up-to-date government guidance (e.g.Introductory Advice to Staff on Planning for Pandemic Influenza) and providing the details of where to obtain further advice (e.g. the National Pandemic Flu Service).


You should remind employees of the content of any internal policies that are likely to be relevant during a pandemic and in particular:

• those on sickness absence, 
• absences due to transport disruption and 
• absences to care for dependents.

Whilst it is important not to cause alarm, employees are more likely to pay attention to information of this nature when they know something is a threat.


You should also consider who in the organisation should communicate this information to ensure that it is listened to and treated with sufficient seriousness. Employees may be more likely to take seriously communications from senior managers or those regarded as spokespersons for the organisation. This will be particularly important if there is ordinarily a relatively relaxed attitude to health and safety in the workplace.

Health and safety

You need to take certain practical health and safety measures to try to minimise the level staff absences. These steps will also be needed to reduce the risk that employees try to bring claims for personal injury, on the basis that an illness was caused or exacerbated by the employer not meeting minimum standards for health and safety at work or by its breaching its duty of care towards its employees.


Hence you should:

• ensure that workplace hygiene standards are as high as possible (e.g. encouraging staff to wash their hands regularly and to carry tissues; installing antiseptic hand-gel dispensers in bathrooms and kitchen areas; introducing more regular and thorough cleaning routines);

• carry out risk assessments to assess any factors that make the employer particularly vulnerable (e.g. high level of contact between people).    A model for risk assessment can be found in the NHS 'Pandemic Flu: Guidance for Businesses' booklet. You may decide to introduce alternative ways of working (e.g. home working) to reduce the risk of cross-infection. Some larger organisations have purchased Tamiflu, face masks and gloves for this purpose;

• ask employees to stay at home if they have flu-like symptoms and make it clear that infected employees should not attend work until they are fully recovered. 

• consider imposing quarantine periods during which employees who have had flu may not return, as well as imposing quarantine periods on those who have come into close contact with those who have been infected; and

• remind employees that everyone has a responsibility under the health and safety policy both to themselves and to their colleagues and that they are therefore expected to comply with the rules and guidelines issued by the employer. You will need to judge whether you need to reinforce this message with the threat of disciplinary proceedings. This will be appropriate in some workplaces but in others may cause employees to "switch off" and hence undermine the importance of the message.

Pregnant and vulnerable employees

At the time of writing, the government has indicated that pregnant women should "carry on life as normal" but, if the level of cases rises significantly in the autumn, it may advise pregnant women and those with weakened immune systems to stay away from work for several weeks. You should give serious consideration to requests from such staff to work from home, or to commute outside rush hour to avoid crowds.
You have an ongoing obligation to carry out risk assessments for pregnant employees and should keep these under review. A sudden surge in the number of flu cases in the workplace would be an identifiable risk to which you would be expected to respond, taking into account government and medical guidance available at the time.


Absenteeism and malingerers


It is likely that the pandemic will cause fear amongst workers and some people will choose to stay away from work, seeing this as the safest option. Whilst this will inevitably reduce productivity, you may risk employees resigning (and potentially claiming constructive dismissal) if they are forced to attend work in these circumstances.


You have various options in dealing with an employee who is genuinely afraid to attend work because of the risk of infection, but the precise approach you take will be determined by the amount of flexibility towards employees that is compatible with keeping the organisation operational. Options include:

• enabling employees to work from home (e.g. providing laptops) although employers should not overlook the need to carry out risk assessments if an employee is home-based;

• showing flexibility about start and finishing times to enable employees to travel outside peak commuter periods;

• rearranging the working environment so that employees have less contact with each other;

• offering unpaid leave to those who are not sick but would prefer to remain at home. This is likely to be a better option than disciplinary action which may prove to be counter-productive and is likely to be very difficult to administer, particularly if there are a number of such cases.  Unfortunately, it is also likely that some employees will use swine flu as an opportunity to malinger and seek paid sick leave without proper cause. The government is considering the option of a temporary extension to the period of self-certification from 7 to 14 days. If this happens it may well tempt some employees to take time off unnecessarily. Employers may have provisions in their contracts that enable them to send an employee for an independent medical assessment, which will be helpful in cases where there is doubt about an employee's true condition.

Normally an employer with evidence that an absent employee is, in fact, perfectly healthy would have grounds to take disciplinary action - although such cases will be rare. Nevertheless, you should ensure that employees understand that disciplinary action will be taken if they believe a member of staff is malingering. In a genuine situation of pandemic employers may find that their normal processes for handling difficult situations come under strain, for example because of reduced resources at management level or in the HR department. You should think carefully before cutting corners on proper procedures nevertheless and should take external advice before taking any steps if it seems that a particular situation could become contentious.

Children and other dependants

In addition to their own illnesses, employees may be affected by:

• the illness of children or other dependants, 
• nursery or school closures and 
• sickness absence of normal carers. 

All these eventualities may present you with an additional pressure on staff attendance. You may need to be more generous about giving time off to employees caring for dependants than you otherwise would be. Statutory rights are limited and are likely to be insufficient in the context of a swine flu pandemic, since alternative carers may be difficult to find. Nevertheless you will need to put some limits on what you think are acceptable periods of absence, bearing in mind health advice and the possibility that some employees may have to deal with unexpected complications or emergencies.


A balance will need to be struck between setting reasonable expectations and relaxing these in cases involving genuine emergency or difficulty. 


You also need to try to be fair and consistent amongst employees to avoid grievances and allegations of breach of trust and confidence or discrimination.

You will also need to consider whether any extensions to permitted absence will be paid or unpaid.


If policies are to be temporarily relaxed or amended,you need to communicate this fact clearly along with a statement that normal policies will be reinstated once the pandemic is over.

Changes to terms and conditions

In addition to entailing a need to review policies, the pandemic could mean you need to impose changes to some contractual terms and conditions, at least on a temporary basis. This may be necessary where:

• employees who have not already done so might be asked to opt out of the Working Time Regulations to cover for sick colleagues;

• employees might be forced to stay away from work against their will (e.g. in quarantine);

• employees might be asked to take on duties outside their normal roles or to undertake training to enable them to perform new tasks;

• employees may have to work to new shift patterns or shortened rest breaks or may have to postpone holidays; or

• employers may take the view that their absence management procedures are not robust enough and need to be tightened.

These measures could lead to breach of contract claims if not handled appropriately, but are far less likely to do so if you bear in mind the following points:

• good communication will be critical to obtaining agreement to a temporary change of terms and conditions;

• if there is an established employee consultation body in place such as a works council or a recognised trade union, their remit is likely to include discussion of matters such as contingency planning and emergency measures. Any proposals should be raised with them as early as possible as it may become impractical to consult with them basis during an actual crisis and their involvement is likely to lead to higher level of employee co-operation;

• employees should be told the reason for any proposed change and the likely duration at the earliest opportunity, to enable them to plan. If possible, employers should seek voluntary co-operation. If the issue is covering for colleagues, those with dependants or other responsibilities outside of work may have less flexibility to provide cover than those without. You may need to consider how to circumvent any feelings of resentment this may cause, perhaps by offering time off in lieu at a later stage once any crisis has passed or additional payment if that is financially feasible for the organisation;

• forcing people to accept changes, by threatening disciplinary measures or dismissing people and rehiring them on new terms, should be a very last resort, but may be needed if the organisation is in real difficulty.

Travel
Employees' normal travel arrangements may be disrupted during a pandemic if public transport is not running to normal full timetables. Employers will need to establish a policy for dealing with employees' difficulties and will need strike a balance between tolerating unavoidable disruption and stating clearly an expectation that employees will not take advantage of the situation. Again communication will be vital.
Businesses with international interests who regularly send their staff overseas should consider:

• whether on a temporary basis they should curtail or cease business travel to reduce risks (for example by using video conference technology as an alternative to business travel);

• whether there are particular countries or locations that employees should avoid for health reasons (taking into account current government advice); and

• whether any special measures are needed to protect those who continue to travel (e.g. ensuring suitable medical cover if local medical cover might be unavailable or difficult to obtain); and

• whether their travel insurance arrangements contain specific obligations such as a requirement to comply with current government guidance on overseas travel during a pandemic. Failure to comply with these stipulations would be likely to invalidate the cover under the policy.

Some employers have organised temporary accommodation for key workers near the workplace in anticipation of disruption to local travel to / from work.