As the credit crunch becomes a reality, affected companies will inevitably consider redundancies.
It is essential for employers to take professional advice, in order to ensure that statutory procedures are followed and real savings made.
Redundancy amounts to dismissal; claims in respect of unfair dismissal or discrimination may therefore easily arise.
Employers have to show in all cases that measures adopted were proper and were proportionate means of achieving legitimate aims
Here are some useful redundancy tips:
Warn the employees
Employers must warn those employees who may be affected. Employees may reasonably be instructed to treat such warnings as confidential information.
Consult with the employees
If proposed redundancies involve singling out employees from a group doing the same job (rather than making redundant everyone in a particular department or place of employment) employers should set objective criteria and score individuals against each other, in order properly and fairly to decide who is potentially redundant.
It is vital that employers consult with relevant employees before making final redundancy decisions – they must be given the opportunity to influence the decision-making process
Check the number of employees who are being made redundant
Where twenty or more employees are being made redundant within a period of ninety days, employers must inform and consult with employee representatives.
Don’t discriminate unfairly in making redundancy payments
Making enhanced redundancy payments to older employees (or to those with longer service) may amount to age discrimination.
Follow Statutory Dismissal Procedures
Employers will find it difficult to contest unfair dismissal claims if they have not followed proper procedures.
These require, for instance, written invitations to consultation meetings and notification of rights of appeal against adverse decisions.
Speak to our employment team today for furher information.