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Redundancy/Re-organisation

We are able to assist in all aspects of a business re-organisation or redundancy. In some situations a re-organisation may not result in a redundancy situation and an employer may not have to make costly redundancy payments.

Alternatives to redundancy

There are various alternatives to redundancy which could include short term or long term measures for example:

  1. Reduce headcount by removing temporary workers, withdrawing job offers, retraining and re-deployment;
  2. Consider temporary measures such as temporary lay off, sabbaticals, unpaid leave or holidays;
  3. Change terms such as reducing remuneration and/or benefits, or pay freezes.

All of the above are likely to involve some risk and it is advisable to arrange a consultation to discuss the potential risks and processes.

Redundancy

  1. The following are examples of when a redundancy situation may occur:
  2. Employer decides to close their whole business;
  3. Employer decides to close a part of a business or an office;
  4. The requirements of the employer change and they no longer need employees to carry out work of a particular kind;
  5. The requirements of the employer change and they no longer need employees to carry out work of a particular kind at a particular place.

Employers must also follow a fair process which includes the following:

  1. Warning all employees that could be affected by the potential redundancy situation. This could be done as a group or individual meetings;
  2. Consideration of selection pools. This means a group of employees who do the same or similar role. It is possible to have a selection pool of one;
  3. Consideration of fair and objective selection criteria. This will usually involve deciding some criteria upon which to select employees from a selection pool. The criteria could include attendance, performance, flexibility, time keeping;
  4. Individual consultation with those selected for redundancy. It is very important that this consultation is meaningful and that a decision in relation to who is to be selected for redundancy is not made prior to these meetings. Any suggestions on how to avoid redundancy should be followed up by the employer with the employee;
  5. Consider suitable alternative employment as an alternative to redundancy. A role is only likely to be a suitable alternative if it involves the same location, and rate or pay. In addition the employer should consider whether a person selected for redundancy should be bumped into a different role.
  6. There are strict time limits for consultation periods if the redundancy involves getting rid of 20 or more roles.

We understand that every business is different and would advise that employers contact us at the earliest opportunity when considering making redundancies. Following this we will fully explain the procedure to you, and can simply provide you with all of the documents need to ensure the procedure followed minimises the risk of a tribunal claim. In the alternative we can run the procedure and all meetings on your behalf.

 
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