Handling Staff Redundancies

1. Are the redundancies really necessary? 

Redundancy should always be the final resort, rather than the first solution considered. Look at your business case. Is it robust and are the redundancies really a last resort? Make sure you have explored all other options, which could be: 

 

Be aware that the cost of redundancies can be more than anticipated, and one of these alternatives might offer similar financial benefits for your business without resulting in job losses. 

2. Are you aware of the legal requirements when making redundancies? 

 

Ensure your redundancy process complies with legal requirements your business is bound by. These include a period of employee consultation, either individual or collective depending on the numbers of proposed redundancies. There are a set of topics you are legally required to consult on, such as business case, numbers, selection pools and process, alternatives to redundancy and redundancy terms. You must notify selected employees in writing, following your own redundancy policy and abide by any stipulations in your employment contracts. You also need to offer the right to appeal at certain points along the process. Sounds confusing? Contact us today to find out how we can support you through the process. 

3. Are you keeping communication channels open? 

 

Over and above your legal requirements to consult, you need to make sure you are communicating with employees at every stage of the redundancy process. This includes being clear on your reasons for redundancy, contacting every employee you are considering for redundancy, and being open with your selected employees from the initial consultation to their final day of work. This ensures employees feel heard, respected and cared for, which in turn reduces the risk of complaints or appeals. 

4. Have you got a thorough process for employee selection? 

 

When deciding which employees to select for redundancy, you need to make sure you create a good set of selection criteria. They need to be clear, fair and legal, so employees and managers can easily understand then and use them in selecting for redundancy. You need to consult with employees in your selection pool on your proposed selection criteria and listen to their feedback/answer any questions they have. 

5. How can you be considerate to employees selected for redundancy? 

 

It’s never easy to go through a redundancy process with employees, but you can make it easier by showing clear signs of having thought about how to support them. Are there ways you can help them look for alternative employment, possibly with organizations you have partnered with or networks you are a part of? Can you give them some time off during their notice period to job hunt? Can you give them some help in writing their CV or interview skills? Have you thought about an appropriate way to mark their last day of work? In whatever way you can, ensure they have as positive an experience as possible of your company right up until they leave. This benefits your business’ reputation and reduces the risk of an employee taking matters further.