Ten Tips for Fair Redundancies

If you're unfortunately in the position where you will be shortly having to consider redundancies here are Lightbulb's top tips for a fair and relatively painless process...

  1. Is it really a redundancy situation? If you are shortly going to re-recruit back into the role then its potentially a 'sham' redundancy. If you want to recruit the 'head' you have lost then you should wait a few months to avoid unfair dismissal claims!
  2. Less than two years service. Although you do not need to strictly follow a full process (eg formal consultation) for those with less than two years service you may still face discrimination claims regarding how an individual has been selected. If you think this may be the case then you should err on the side of caution and follow a full process as if the individual(s) selected had more than two years service.
  3. Potentially dismissing more than 20 people? Before you do anything check out the collective consultation rules as the admin burden on you is significantly greater.
  4. Consultation should generally last as least two weeks and involve at least two meetings with the individual(s) selected for potential redundancy
  5. Selection pool - if you are making people redundant from a function/role but still require some to carry on performing it then a selection pool will be needed with scoring applied to select the most appropriate people for redundancy. Remember: if jobs are interchangeable then they should perhaps all be in the pool because someone may otherwise argue that they could easily do/have done the similar role that you haven't put at risk.
  6. Selection criteria - Don't be too subjective eg using things lie attitude or future potential! Stick to more objective criteria such as experience, work performance and disciplinary record.
  7. Bumping! You may need to consider whether alternative employment for someone potentially redundant could be someone else's job! This would make the displaced person the redundant casualty.
  8. Appeal. There is no legal requirement to offer an appeal against a redundancy but you may ant to do so anyway, particularly as gives opportunity to address any potential procedural flaws.
  9. Redundancy pay - Statutory redundancy pay is due to those with more than two years service. Also, if someone is 41 years or over they are entitled to increased redundancy pay.
  10. Holidays - If finances are tight you may want to ask those leaving to take accrued and untaken holiday during the notice period. This may be a contractual provision or you you could give twice the notice of the holiday accrued. Eg Giving two weeks notice that someone take one week of holiday.

Do contact us if any other questions on redundancy or indeed any employment law matter. We are are always happy to give a quick bit of free advice.

And as you are here...why not take a look at our Painless People Management Programme - 15 off fees for bookings agreed in August.

Our full August Newsletter here...