Redundancies: Getting it right 18 November 2020 Redundancy - - PowerPoint PPT Presentation

Redundancies: Getting it right 18 November 2020

Redundancy situation

• Most common- diminished need for employees

to do work of a particular kind

• Diminished level of work is to be judged by

employer – commercial judgment/priorities of the business

• Employees with over 2 years’ service protected

from unfair dismissal

Collective/Individual consultation

• If 20 or more dismissals proposed = collective

and individual consultation

• Obligation to notify the Secretary of State
• Period consultation must begin before first

dismissal takes effect

• 30 days for 20-99 dismissals
• 45 days for 100 + dismissals
• Less than 20 = individual consultation only

Redundancy flowchart

Establish a genuine redundancy situation

Step 1

Consider pool and selection criteria and any alternative vacancies

Step 2

Elect representatives & notify Sec of State (if collective consultation applies)

Step 3

Start collective consultation (if more than 20 redundancy dismissals)

Step 4

Redundancy flowchart

First at risk letter & individual meeting

Step 5

Scoring process

Step 6

Individual consultation process (including search for alternative vacancies)

Step 7

Dismissals and appeal

Step 8

Selecting employees

• Roles at risk, not people
• What work is reducing and who does that work?
• Consider if voluntary redundancies could assist

Choosing the selection pool

• Employer has flexibility
• Is the pool within the range of reasonable responses?
• Consider:
• What type of work is ceasing or diminishing?
• Which employees are doing similar work?
• Are employees’ jobs are interchangeable?

Selection criteria

• Should be objective, verifiable and reasonable
• Examples:
• Performance against targets
• Communication with customers
• Disciplinary record
• Attendance (but watch disability)
• Qualifications and training
• Be wary of potentially discriminatory criteria

Selection criteria

Consider:

• Use a scoring matrix/assessment form
• Give clear guidance to managers as to how

employees should be scored

• If and how you will mix of evidence based and

more subjective criteria

Individual consultation

At risk meeting First letter – At risk First Consultation Meeting Scoring process Second letter – scores and invite to Second Consultation Meeting Third letter – follow up second meeting and invite to final meeting If applicable, deal with applications for alternative employment Final Consultation meeting – dismissal Fourth letter – confirmation of dismissal and right

• f appeal

Appeal process

Key points of consultation

• Plan in advance but be adaptable
• Educate and train managers to conduct meetings
• Consider redundancy situation now and in the

future

• Include absent employees
• Genuine consultation

The impact of COVID 19

Alternatives to redundancy

• A cut in pay (keeping hours the same)
• A cut in hours with associated reduction in pay
• Job share
• Sabbaticals/career breaks
• Re-training
• Job Support Scheme/Furlough under the CJRS

Altered process

• Skype or zoom video calls
• More time to enable employees to prepare
• Pay extra attention to communication
• Don’t be tempted to do everything in group

meetings

• Make sure employees know how to contact you

if they are not in the office

Additional risks

• Employees more likely to challenge their

selection over their colleagues

• Employees more likely to challenge the

redundancy situation itself

• Heightened emotions
• Higher compensatory award due to job market

Questions?

FAQs

• Does an employee have a right to see other

employees’ scores?

• Should you consult over the selection criteria?
• Do you have to offer voluntary redundancy?
• Do you have to consider bumping?

FAQs

• Do you have to honour an employee’s current

salary if you offer them a more junior role?

• Do you have to look for vacancies within other

group companies?

• Do you have to allow employees time off to look

for another job if they are redundant?

FAQs

• Can we make employees on furlough or the Job

Support Scheme redundant?

• If business picks up how long do we have to wait

before we can re-advertise for roles?

• When do you have to count voluntary

redundancies in numbers for collective consultation?

FAQs

• Can we use competitive interviews rather than

selection criteria?

• Can we make people apply for their existing

jobs?

• Can you make an employee who’s pregnant or
• n maternity leave redundant?

David Roath T: 07793625 900 E: david.roath@parissmith.co.uk Tabytha Cunningham T: 07384258461 E: er@parissmith.co.uk