Coping with redundancy

Staff cuts are a risk for many employers and employees in the current economic climate.

Whilst losing one's job is for nearly everybody totally unwelcome news, it will be less of a shock if both parties have anticipated what needs to be done before any staff can be made redundant. This applies whether the job losses are due to a restructure or straight-forward head-count reduction.

provides an excellent and up-to-date step-by-step guide for employers considering a redundancy exercise , together with legal overviews and a full set of supporting redundancy documentation. There is also clear guidance on such terminology as unfair dismissal, compromise agreements and involuntary redundancy.

For employers, here are a few health warnings about the redundancy process. Employees facing unemployment and with unfair dismissal in their thoughts, will find the health warnings very relevant to them too:

• No one should be confirmed redundant or given notice of dismissal on grounds of redundancy until after the consultation process is completed.
   
  
• Whether you are considering compulsory redundancies or voluntary redundancies, there are strict notification procedures if you are considering reducing head-count by 20 or more within a 90 day period.
   
  
• Redundancy is a form of dismissal and therefore a fair dismissal procedure should be followed.
   
  
• Depending on the numbers involved, you may have to build into the redundancy exercise a process for carrying out an election for representatives.
   
  
• The consultation process should be meaningful and therefore redundancies not a foregone conclusion; any alternative solution should be actively sought and considered.
   
  
• Don't discuss compromise agreements and severance packages too early in the process.
   
  
• Really look for alternative vacancies and never ever assume that someone will refuse a role because it is of lower status or pay.
   
  
• Check absentees (including those on long-term sick, and maternity or adoption leave) are kept informed throughout the process and invited to meetings etc.
   
  
• Directors of companies should check their Articles of Association and ensure that any additional legal procedures regarding the removal of directors are followed. Remember to notify Companies House.
   
  
• Do not make any false promises or ones which may be genuinely meant but that cannot be guaranteed - eg that there will be no further redundancies and that this is the end of the process.
   
  
• Take care re garden leave - this should not be used until the employee has been given notice - check the contract for a clause that permits you to do this.
   
  

But the biggest problem for an employer has to be fudging a redundancy situation to get rid of someone who is under-performing, particularly when the under-performance has never been tackled before, or where someone's "face just doesn't fit" any more. It's one of the easiest routes to an unfair dismissal claim we know of - and its also one of the most costly!

To summarise, always bear in mind the factors a tribunal will consider in deciding whether a redundancy dismissal is fair:

• Was sufficient advance warning given to employees?
• Were the selection criteria reasonable (and free of any form of discrimination) and were they applied fairly?
• Was proper consideration given to suitable alternative employment?
• Did consultation take place with recognised trade union or elected employee representatives, if required?
• Did proper consultation take place with the individual(s) selected?

can guide you through the process to ensure you comply with the law and can defend any claims. We have a specific Pay As You Go redundancy package or you may prefer to use our ongoing advice and support services. Subscription will give you access to our website including access to a redundancy policy , template letters for informing of redundancy consultation and confirming redundancy PLUS legal overviews , a step by step guide to redundancy and a redundancy pay reckoner .