Read more articles in: Amanda Hyam, Blog, Employment Law

The important elements of redundancy: Are your processes in line with legislation?

Redundancy is never a nice outcome for either employer or employee. It is a delicate and emotional situation but its important as an employer, you follow legal protocols and have the correct measures in place.

For many, redundancy is a last resort but it’s important to respect the employee throughout the process and ensure you are following processes diligently.

If you are considering making employees redundant, it is wise that firstly you have a plan in place that demonstrates the role isn’t required and seek legal advice from employment law experts.

Why might I make roles redundant in my business?

There are several reasons why employers may decide to make roles redundant within their company.

The company may be going through a transition period, restructuring how they do things across different departments. This restructuring could also relate to various costs across the business.

Another reason is a change in direction. You might be changing what your business does or sells and that could mean roles within your company are no longer required.

Your company changes may be more than just structural and might mean a change in location.

Moving the business to another area or becoming a fully remote company, may mean roles become redundant.

You may also be closing your business entirely which would likely lead to redundancies.

What is the redundancy process I need to follow?

It is always important to remember the redundancy can be emotionally straining for all parties involved so you should always bare that in mind when starting the redundancy process.

You will need to take a firm position and keep the process formal and professional but respectful to the situation given how hard it will be for your employee.

There are strict processes in place, but you must conclusively clarify the business no longer needs the role or roles you are making redundant.

In addition to this, you must try and find a suitable alternative role within the business if the current role is to be made redundant.

In some cases, that can be complicated especially if you are possibly changing location or closing the business.

It would be their choice to apply for the role, but you must confirm to your employee there is an option to apply for alternate roles should any be available.

They can also try out the role across a four-week period without giving up their rights to redundancy pay.

What are the rights of my employee and is that going to change?

Your employees will have certain rights and in some cases, be entitled to redundancy pay depending on their years of service with the company.

Throughout the process, you must allow that employee time to explore other job opportunities, time off to do so and to arrange any training where necessary.

The process must also be fair, and your employee can contest the reasoning and fairness for being selected. As noted above, your reasoning must be sound, and you must demonstrate clearly that role is no longer needed.

If you are currently thinking about your business and potential redundancies, it is important you understand the upcoming Employment Rights Bill which will bring in a number of new laws and regulations.

The Employment Rights Bill will cover several employment factors and employee rights including redundancy. It is very important you understand the new Bill which will come into effect later this year.

This may change the entire redundancy process so its crucial you understand and consider this before deciding to make roles redundant within your company.

What should I do if I am considering redundancies within my company?

Deciding to make roles within your company redundant is never easy and it is always best to explore other options before going down the redundancy route.

Before doing any of this, you should speak with employment law experts. Employment solicitors will give you a comprehensive breakdown of how the redundancy process works your legal obligations and the potential effects on your employee.

This may include new rights once the Employment Rights Bill passes through Parliament and becomes law.

Redundancy is usually the lost resort so it’s important to speak with legal experts who can help you assess all the options.

For all redundancy concerns and understanding your legal obligations, contact us for advice and support today.

Amanda Hyam

Head of Dispute Resolution and Employment

I have specialised in Dispute Resolution, Civil Litigation and Employment law for more than 15 years. I understand how daunting the prospect of litigation can be and because of this I am always available to discuss concerns.