Redundancy advice for employers can sometimes focus entirely on best case scenarios.
But as we know, life doesn’t work like that.
If you’re considering going through a redundancy procedure with employees, you must be aware of all of your legal responsibilities so that you handle them most efficiently and carefully possible.
And that begins by identifying the reasons why you might need to make redundancies.
If you would rather cut straight to the chase, why not speak now with one of our specialist employment law solicitors? Simply call us now on 0845 1391399 or complete a Free Online Enquiry and we will connect you with them for a free, initial discussion.
Business Redundancy Advice
If we’re defining redundancy, then it’s specifically where your needs as an employer for a work of a specific type have reduced to the point where you don’t need as many staff as you previously did.
Alternatively, it might be due to a workplace closing, with staff being asked to relocate.
If they’re unable to do so, they may be made redundant.
The end result is that an employee, or employees, will be relieved of their duties following the redundancy process…
The key here is that any employer that finds themselves in a redundancy situation MUST go through a fair redundancy procedure before making any decisions on redundancy.
There are no ifs, buts, or maybes. you must follow the ACAS guidelines as a minimum to avoid legal action from employees for unfair dismissal. That means:
- Applying fair selection criteria
- Consulting with employees
- Explaining the reasons why redundancies are being made
- Exploring any possible alternative options
- Allowing employees to appeal their redundancy
Redundancy can be difficult for everyone involved, not least because you may have built relationships during your time working together, and because the future may be uncertain both for the employee and for you as an employer.
Redundancy Options – What About Settlement Agreements?
Many employers will explore a settlement agreement as an alternative to the redundancy process.
One factor in a settlement agreement is that the employee waives the right to progress through a fair redundancy procedure in exchange for a settlement fee.
The positives of a settlement agreement are mutually beneficial.
- The employee receives a fair amount of compensation
- The employer has closure to the situation so that they can spend more time focusing on their business
Avoiding having to go through the redundancy process where one or both parties might become agitated is also beneficial.
You should know, though, that the employee DOES NOT have to accept the settlement agreement.
If they refuse, the employer still has the option to press ahead with the redundancy process.
In this instance, it would be advisable to seek legal advice to ensure that the procedure has been conducted fairly or whether there might be the potential for an unfair dismissal claim.
The Redundancy Process – What’s Fair?
If an employee has worked for you for at least 2 years, then you are legally required to follow a fair redundancy process.
This means the employee should be invited to a minimum of one individual meeting with to discuss redundancy – but otherwise, there’s no ‘template’ to follow.
The process has to be clear, and individual meetings should clarify key issues such as:
- Why redundancies are being made
- That the employee is being considered for redundancy
- Whether there are any other opportunities in the business for them
It’s also an opportunity for an employee to ask questions about what happens next, voice any concerns, and inform you if they believe the process has been unfair.
If an employee has worked for less than 2 years, you don’t need a formal redundancy process.
Redundancy Advice Near Me
The redundancy process can be complex and knowing what your legal obligations are might seem confusing at first.
Having a legal expert on your side throughout the process can be invaluable, and at Solicitors Near Me, we’re here to help with precisely that.
We connect you with a solicitor near you for FREE – and there’s no obligation to proceed either.
Whatever your needs, there’s a solicitor near you to help you with redundancy legal advice…