We know that any redundancy process is difficult for employers and employees alike. Employers are required by law to consult extensively not just on the need to reduce workforce roles or create new ones to better align with the business feature needs, but also pools for selection, selection criteria and application of that criteria and suitable alternative employment. Our experienced team are experts at planning and carrying out collective and individual redundancy processes in a way that is efficient and effective for all involved.
We regularly help clients navigate the complexities of employment law, offering practical advice to ensure that the correct redundancy procedure is followed. Getting the process wrong can be expensive, very time consuming and harm the reputation of any employer. We help make sure employers do not ignore their collective information and consultation obligations and minimise the risk of any wrongful, unfair dismissal and discrimination claims down the line.
Our extensive experience and expertise includes:
- Individual and collective redundancies, ranging from single employees to hundreds
- Managing employee consultations, including working with unions and other elected representatives
- Defining pools for selection
- Creating and applying a fair redundancy selection process
- Suitable alternative employment
- Statutory redundancy payments
- Changing terms and conditions
- Temporary lay-offs and short-time working
- Business transfers and outsourcing (TUPE regulations)
- Defending unfair dismissal and discrimination claims at Tribunals.
Frequently asked questions
How does the consultation process work?
Failure to conduct a proper consultation process could result in claims of unfair dismissal and even discrimination, so it is important to get it right. You must consult with all employees who could be affected by redundancy, although there are different considerations to factor in depending on how many redundancies you plan to make. It is also important to remember that you must not present your final (decided upon) redundancy plans at the start of the consultation process.
Consultations can take place face to face, using video conferencing or over the phone and should involve explaining the situation to employees and the business’s proposals getting their feedback, which should be worked into final plans.
If you are planning to make 20 or more employees redundant within 90 days, you must inform and consult with any trade unions or employee representatives over 30 days. 45 days if 100+ are at risk of redundancy.
Don’t forget that you must also consult with any employees who are currently on maternity leave.
In collective redundancy cases, you can only give notice of redundancy related termination of employment once the consultation process has finished and a minimum time period has elapsed since the start of the consultation process – 30 days for between 20 to 99 redundancies and 45 days for 100 or more.
How do I select employees for redundancy?
It is very important to select employees for redundancy in an objectively fair way and not discriminate on grounds of a protected characteristic. For example, you must not select employees because of e.g. their age, disability, race, sex, religion or part-time employment status.
Instead, it is best practice to base selection criteria on standards of work, attendance record and disciplinary record. Giving increased weighting to the selection scores where necessary.
How much notice do I have to give?
Notice can only be given once you have finished consulting everyone and in cases of collective redundancies, the relevant minimum period has passed.
The length of notice will depend on how long the employee has worked for you, as well as the individual terms of their contract.
How do I calculate redundancy pay?
Again, this will depend on how long the employee has worked for you, their age and also the terms of their contract. You can use our redundancy pay calculator.
