Getting it Right When it Comes to Redundancies Within The Workplace

News

We are continuously faced with the effect of the “economic downturn” on a daily basis and whilst some people may be optimistic about the future, most of us are just trying to survive.

 

The same is very much to be said about business, regardless of the industry.  Redundancies within the workplace are now common, however that doesn’t mean that employers can become complacent when it comes to following statutory procedure and properly handling a redundancy situation.

 

Whilst we hope the need for a redundancy situation is becoming less likely and that businesses are becoming inventive in ways of trying to avoid redundancies, such as offering more part-time work and reducing the number of working days etc, it is useful to have a redundancy procedure in place if the need arises.  This will give protection to both parties and will give a fixed procedure to follow to avoid any uncertainty or criticism.

 

The procedure should include ensuring there is a consultation process with the employees concerned, and setting out the detail of that process, such as the stages involved; guidance on the selection criteria used if a redundancy situation arises, such as review of attendance and disciplinary records, experience and capability. The criteria should be unbiased, fair and undiscriminatory . There should be an Appeals process in place to allow the employee to appeal the decision of any redundancy.

 

Whilst it is not illegal to make redundancies, an employer needs to ensure that the procedure is managed appropriately and sensitively to avoid any claims for unfair dismissal.

 

There are statutory provisions for payments to be made on foot of redundancies which take into account the age, number of years of service and salary of the employee. An employee is entitled to notice pay in lieu of notice and holiday pay if relevant.

 

In summary therefore, consideration should be given to the following if a redundancy situation arises:

 

·        A Consultation Process

·        Selection Criteria for a redundunancy

·        An Appeals Process.

 

In the event that you require the assistance of a solicitor for an employment matter, kindly contact a member of our Employment Department.

 

Sarah Baillie