If you are an employer and planning to make an employee redundant, you must follow the legal procedures.
The thought will be overwhelming if you determine that your business might need to create redundancies or reorganize the workforce.
You need to consider certain factors from a commercial and legal viewpoint. It is important to seek specialist employment law advice from an early stage before you can embark on the process and reduce the business liability related to redundancies.
Therefore, losing your job is scary. In this situation, redundancy becomes stressful, but you have the right to know the legal requirements as an employee.
In this guide, you will discover some of the key factors and considerations of the redundancy process and some tips to manage the process.
What Is Redundancy?
Simply, it occurs when your job will no longer operate within the existing company structure. This can happen for multiple reasons, like closure or downsizing the business. On the other hand, it can occur when the direction or nature of a busyness changes.
While you embark on the redundancy process, the company makes sure all the other options get relapsed, and you can explore before restoring the job loss.
Therefore, the rules on redundancy are regulated in UK employment law. While the employers have multiple legal regulations, they also have the right to intervene. The legal obligations are:
- To adopt a fair selection procedure.
- One who is able to justify the utilization of redundancy for a reason for the ending point of your employment.
- Undertake adequate consultation with the employees who are affected.
- To provide a suitable notice period.
- Offer suitable alternative employment.
- Allow time to scratch for a new job.
- Making a redundancy payment.
Mitigating The Needs Of Redundancies
You must have a good business reason for making employees redundant. Furthermore, you should also avoid taking steps that create compulsory redundancy.
There are several techniques one can do this:
- Reducing the time of the working hours.
- Trying to find alternative employment for the employees.
- Letting self-employed staff go.
- Reducing hours and pay.
- Offering the employees with opportunities to work at different premises.
- Reducing the hours or pay (employees must agree to this).
Identifying The Workforce For Redundancy
After attempting compulsory redundancies, with no alternative resources available, you need to identify suitable people.
It is essential for a fair selection of attributes that are used, and it might include:
- Disciplinary record.
- Length of service.
On the other hand, you might not choose employees on the criteria of them being under the following criteria:
- One during the family leave.
- One who is on the parent leave.
- An employee or union representative.
Furthermore, you must not be swayed in your decision and should consider the following criteria before acceptance, and they are:
- Gender assignment.
- Belief and religion.
- Marital status.
- Sexual orientation.
These traits get protection features under the Equality Act 2010.
You can use any dismissal used under these as a qualifier, which will automatically be deemed unfair by a redundancy solicitor. At the same time, the number of working hours becomes invalid under the selection criteria.
What Is The Notice Period During Redundancy?
As per the law, the employer must offer you a set of prior notice. This is either the notice period that is specified in your contract or the number of statutory minimum notice periods.
You should receive the one that is greater than the two.
Hence, the statutory minimum notice period is based on the length of the service:
- 1 month to 2 years: One week notice.
- From 2-12 years: One week’s news for each year of service.
- 12+ years: notice that is capped at 12 weeks.
Therefore, if the employer is offering you a huge amount and needs you to work your notice period, this might be considered “pay instead of notice.”
The employer might also ask you to complete your notice period at home, which can be considered “garden leave.”
Similarly, during the phase where you no longer work for the company, you can still have legal employment during the garden leave.
Thus, you would only be able to initiate with a new employer once the period has ended.
Giving Notice To Redundancy Proposal
When there is a consultation stage, you should see if it is completed with legal formalities, and the final selection is decided. Hence, you must:
- Confirmation during the statutory period with notified employees.
- Issues selected employees with formal redundancy notices.
Therefore, the time depends on how long they have wired for you. At the same time, you should also notify them about their statutory redundancy payments and right to appeal.
How Does The Redundancy Selection Process Work?
Employers should be fair when they select to be redundant. Hence, they must state why they are lost (or altered) and how they are selected for redundancy.
During the selection of employees from the entire company or organization, the process execution is on the objectives and criteria such as
- Attendance record.
- Disciplinary record.
You cannot be selected because of things like your gender, age, pregnancy, disability and your race or religion.
Within the legal regulations, these are known as protected characteristics and decisions that are based on who would be discriminated against.
The employees also have the liberty to choose a “last in, first out” approach to selection but sometimes have to justify this approach.
Conduct a Legal Redundancy Process
If there is any serious discussion with the employer, it may be very significant for you, and it can knock your confidence.
It is integral to remember the decisions as they are based on the business needs and are not personal.
It can be an emotional experience, but if you can keep those emotions in approach and check it in a business-like manner. This is where you will likely have a better experience and save your work.
Hence, redundancy can be a painful event. This can often lead to a better working or job experience, so remain positive.