What should a formal redundancy procedure entail?
Redundancies entail a strict set of requirements which, if not properly observed, could result in claims of unfair dismissal brought against you. To reduce this risk, you should have a fair procedure in place for the event of making redundancies and follow it closely.
A redundancy procedure should cover:
- Identifying a reasonable ‘selection pool’ of employees considered for redundancy. Fair, objective criteria must be applied to all employees within the pool.
- Consulting with and warning the selected employees about the possibility of their redundancy.
- Consulting with and informing employee representatives where collective redundancy is an option.
- Fair and reasonable procedures for making individuals redundant.
- Seeking the opinion of any workers’ union involved.
- Considering alternative roles within your company for employees whose current roles are redundant.
- Allowing reasonable paid time for redundant employees to look for work or make other arrangements for gaining new employment.
For more information on redundancy procedures, see the Acas guide or contact Helix Law.