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5 things you need to know about handling redundancies - www.expansa.co.uk
Jun 14

5 things you need to know about handling redundancies

Redundancies are a harsh reality in many industries in the UK. Where the job of one or more employees becomes surplus to requirements by the business or the business can no longer afford to pay staff redundancy is the natural step. If you’re responsible for redundancies at your company here are 5 must-know points:

  1.  ‘Fair’ reason: you must be able to prove in any dismissal that the termination of employment is done with ‘fair’ reason. In the case of a redundancy you must be able to prove as discussed above that the employee(s) can no longer be accommodated within the business. Upon request you should be able to produce evidence to support each redundancy. Where a set number of staff must be let go you must formulate a set of criteria, in association with the trade union or a collective of employees, in order to select fairly.
  2. Consider all options: when considering making redundancies there may be alternative solutions which you won’t be sure of until you discuss them with staff. Once you address the issue of redundancy in may become apparent that some staff are willing to take a pay cut rather than take redundancy. Others may express an interest in retraining in order to stay on. As an employer you should consider the possibility of moving people from one area of the business to another and must always give them the opportunity to apply for available posts.
  3. Consultation: all employees facing redundancy are entitled to a private consultation. Where 20 or more people are to be made redundant the employer must also meet with the trade union or a collective of employees. In addition consultation with remaining employees is required (on a group rather than individual basis) to discuss the future of the business.
  4. Time frames: You are required by law to consult with the staff facing redundancy at least 30 days before the date of dismissal. This increases to 90 days if the number of redundancies is over 100 people. These timeframes also give a guide to notice periods. Check all individual contracts to establish if any employees are due a longer notice period.
  5. Pay: an employee is entitled to statutory redundancy pay after 2 full years of service. How much they are due will depend upon their base salary, length of service and age. You should consult their contracts for any company agreed redundancy clauses. Calculate statutory redundancy on the gov.uk website.
Created on 14th June 2013
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