I need to make some employees redundant: what do I need to do?
Firstly, we need to ensure that a genuine redundancy situation exists, within the meaning of the definition of redundancy contained in the Employment Rights Act 1996. Once it is identified that there is a genuine redundancy situation, we then need to look at implementing a fair procedure.
We will need to determine whether it is necessary to go through Collective Consultation – this is where the consultation will need to be for a minimum period (30 or 45 days) depending on numbers affected by the redundancy. If collective consultation applies, employers will need to consult with recognised trade unions or employee representatives may need to be elected. Specific information will need to be provided by the employer to the trade union/employee representatives.
We will guide the employer through the consultation process.
We will need to determine if the role to be made redundant is a unique role, or one from a group of employees who undertake the same or similar type of work. If selection is required, we need to identify the appropriate selection criteria to be used; and ensure this is scored objectively.
Confirming the Redundancy
We will advise on the process to set up the final consultation meeting where an employee’s redundancy is to be confirmed. An employee does have the right to be accompanied at this meeting by a trade union representative of a work colleague.
Redundancy Pay and Entitlements
An employee with more than 2 years’ service would be entitled to a redundancy payment. Redundancy pay is calculated based on the employee’s age and length of service. The employee would be entitled to 1 week’s pay for each year worked, but this is increased to 1.5 for each worked above the age of 41; and reduced to 0.5 for each year worked below the age of 18. A week’s pay is what the employee would normally earn, but a week’s pay is capped at an amount set by Government each year.
We can help calculate the Redundancy Payment
The advice and comment in this article is not meant to be an authoritative statement of law. The articles and summaries should not be applied to any specific set of facts and circumstances without seeking further advice. Whilst every care is taken to ensure that the content is correct Sentient cannot accept responsibility for the accuracy of statements made nor the result of any actions taken by individuals after reading such.
Redundancy advice is complex. There are many pitfalls for the unwary employer. Sentient have HR professionals with enormous experience of redundancy issues and have given advice to hundreds of employers. Call us now on 03456 446006 to see how we can help with redundancy advice for your organisation.