Archive
Category: Redundancy
Redundancy – ending employment
If you’ve followed a fair and robust redundancy process and found that there is no alternative but to end the employment of the ‘at risk’ employees, here’s what you’ll need to consider.
Notice – if you have the contractual right you could place the individual on garden leave or pay them in lieu of notice. Alternatively, you could ask them to serve out their notice.
Redundancy pay – this is based on the individual’s length of service on the last day of their employment (the government calculator is a useful tool). Don’t forget that if you have a redundancy policy it may require you to pay amounts greater than the statutory redundancy payment.
Holiday – employees are entitled to holiday pay for accrued untaken leave when they depart. This can be paid as a lump sum or with appropriate notice you can require them to use their remaining holiday during their notice period.
Outplacement – a great way of reducing the possibility of litigation and creating a positive end to employment. The individual secures CV writing skills, support with job search, coaching and interview skills training. Get in touch if you’d like to find out more.
This update is accurate on the date it was published, but may be subject to change which may or may not be notified to you. This update is not to be taken as advice and you should seek advice if anything contained within affects you or your business.
Webinar catch up – ‘Simplifying Redundancy’
If you missed our recent webinar, ‘Simplifying Redundancy’, you can watch the session on-demand here.
We explain how simplifying the redundancy process creates better business and people outcomes, specifically:
- Exactly what ‘simplifying’ the process means for your business and people
- How to leverage technology to create a smoother and more compassionate people experience during redundancy
- How a simplified process will allow you to manage more effectively the mental health and productivity impact of a redundancy process
The session includes employment law, HR technology, outplacement and coaching expertise from across our Empowering People Group to share unique insights covering every stage of the process. Definitely worth a watch!
This update is accurate on the date it was published, but may be subject to change which may or may not be notified to you. This update is not to be taken as advice and you should seek advice if anything contained within affects you or your business.
Redundancy – suitable alternative employment
Once you’ve confirmed there’s no other option but to make the individual’s role redundant, the next step is to consider suitable alternative roles that you have available. Here’s what you need to know…
Compare and contrast – the suitability of a role is determined by comparing the individual’s current ‘at risk’ role with the role available. Salary, place of work, skills required and aptitude for the role are all factors you can use to determine whether the available role is a suitable alternative.
Be specific – it’s not good enough just to give the employee a list of available roles – you need to search out the roles that could be suitable alternatives.
Bigger picture – if you’re part of a group of companies, your search for suitable alternatives should be group-wide.
First in line – if the ‘at risk’ individual is on maternity leave, they must be offered the suitable alternative role ahead of any other individual who might also be suitable for the role. Also, watch out for new legislation that extends this right.
This update is accurate on the date it was published, but may be subject to change which may or may not be notified to you. This update is not to be taken as advice and you should seek advice if anything contained within affects you or your business.
Fair redundancy selection criteria
Once you have your pool of employees at risk of redundancy, you’ll need to decide your criteria for selecting which employee(s) remain at risk.
Fairness, objectivity, and consistency are the backbone of a lawful selection process. Here’s what you need to know:
Objective, measurable selection criteria – if not, it’s likely to result in an unfair dismissal. Ensure that you consult on the selection criteria that you’d like to use so that each individual has the opportunity to have their say before scoring starts. Click here for our suggested selection criteria.
Avoid discriminatory selection criteria – if it’s based on length of service, absence or flexibility, it could be considered discriminatory based on age, disability or sex respectively. Ensure that you make adjustments so that the criteria do not prejudice those with protected characteristics, or avoid using them entirely.
Fair scoring – ensure that your selection criteria feature on a scoring matrix with clear parameters. Ideally, ensure that any score is justified with evidence as to why it has been awarded.
Verification of manager scores – ensure a manager with the ability to find evidence or measure the individual against the selection criteria carries out the initial scoring. Get another manager to verify their scores (preferably one with knowledge of the employee).
Consult about scores – individuals have the right to know their scores, as well as being given evidence supporting the scores and the breakpoint they had to achieve to avoid redundancy. They can challenge their scores, possibly resulting in re-scoring if there is merit to their objections.
This update is accurate on the date it was published, but may be subject to change which may or may not be notified to you. This update is not to be taken as advice and you should seek advice if anything contained within affects you or your business.
Redundancy – when do you need to pool?
When you have more employees than roles available, you may need to ‘pool’ ‘at-risk’ employees to fairly decide who remains at risk of redundancy.
Be clear on the roles at risk – identifying which roles need to be pooled isn’t always as easy as it sounds. Do you have different job titles or job descriptions for the same roles, have job titles and job descriptions not kept up with the roles individuals are actually doing? This all needs to be considered.
Identify individuals carrying out the pooled roles – do a number of individuals interchange between different roles? In which case would it be reasonable to include those individuals within the pool?
Consider individuals at other sites – where individuals move around sites and all do the role that is at risk, consider whether each of those individuals needs to be pooled.
Bumping – bumping occurs when an ‘at-risk’ employee is retained in favour of an employee who isn’t at risk (usually as they have better skills for the retained role). While there is no obligation to bump, you need to consider whether it’s appropriate to do so and make a note of your thought process.
Consult – once you’ve decided on your pool, you’ll need to ensure that you discuss the pool with ‘at-risk’ individuals before going ahead and applying selection criteria. A fair redundancy process includes giving individuals the right to challenge the pool before scoring ‘at-risk’ individuals.