A timetable for redundancy
A subscriber recently contacted us with a query about redundancy. They’d never faced this situation before and wanted to know what to do first. Is there such a thing as a redundancy timetable?
Where to start?
Our subscriber has to make a couple of redundancies for the first time. Like everyone else, they know how important it is to get the procedure right (and the implications of getting it wrong). But they don’t know where to start! Our basic redundancy timetable might be the ideal tool to help keep them on the straight and narrow and out of tribunal.
Stage 1 - redundancy?
Before you do anything, you should verify that the reason for dismissal is really redundancy. This is a term that’s used rather loosely and seems to cover a myriad of situations such as “they’re no good at their job” or “they just don’t fit in”, neither of which, unfortunately, complies with the strict definition under the law. You should be closing the company, entirely or in part, or you should now need fewer employees to do the work (the most likely scenario). If you’re dismissing staff as a result of business reorganisation, it’s more likely to be for “some other substantial reason” than redundancy.
Stage 2 - get talking
The next stage will be to identify those affected and to make arrangements for consultation. The law lays down certain minimum periods for consultation if you’re looking at more than 20 people being dismissed (at least 30 days before the dismissals take place). If, as in our subscriber’s case less than 20 people are involved, you should still consult with the individuals. A reasonable period of consultation would be two-to-four weeks.
Tip. “Affected” employees could include those who are staying but taking on extra work; so don’t forget to consult with them too.
Stage 3 - selection
Next, you must select those being made redundant. Try to avoid using “last in, first out” as this can discriminate against women who often have shorter service. A far better method is to use a matrix and score each individual against a set of criteria (e.g. attendance, management potential, performance etc). You should, of course, discuss selection during the consultation process.
Tip. If you ask for volunteers be sure to reserve the right not to have to accept applications if this would impair the operational efficiency of your business.
Stage 4 - alternatives and pay
You then have to see whether there are any open positions in your organisation that can be offered. Don’t be afraid to offer jobs at a lower level - it’s up to them to decide whether or not to accept. Remember also, that they have a four-week trial period in which to try the job. Then you need to calculate redundancy and other payments such as notice.
For a free redundancy payments calculator visit http://personnel.indicator.co.uk (PS 07.16.04).
Stage 5 - notice
Finally, it’s time to give notice - not at the beginning of the consultation period, but at the end, otherwise it looks as though the consultation is merely a sham. Naturally, you don’t want to give anyone the wrong impression - or the ammunition needed to bring a claim.
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