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Redundancy

Getting It Right

Redundancy can be a stressful and worrying time for all parties, however the key is to come out from it with the right solution and relationships intact  

If you need to ‘Downsize’, whether that encompasses a single post or an entire team, we’ll help you plan, communicate the news, ensure you meet all your legal obligations and manage the risks. We’ll do this with you, not to you, as it’s essential to minimise the disruption to your business using a fair and robust process with great and timely communication.  

Statutory Requirements 

The process and timelines for redundancy will be dependent on the number of roles you are proposing to make redundant; the key differences are as follows:  

Less than 20 (at any ‘one establishment’ within a 90-day period):
– Agree a meaningful consultation period

For 20 or more:
– Provide formal notification to the Redundnacy Payments Service on From HR1
– If the employees do not have Trade Union representatives, provide them with the opportunity to elect individuals to represent them in ongoing consultations 
– Consultation must begin at least 30 days before notice of dismissal is given, and 45 days if over 100 employees 

Individual consultation should take place in all cases 

 

What People Want To Know

Do I need to consult before I make a redundancy?

Yes, consultation is a legal requirement and an employment tribunal could accept a claim for unfair dismissal if you cannot show you’ve consulted an employee or employee representatives.

How do I calculate redundancy pay?

Statutory redundancy pay is based on age and length of service for those employees with 2 or more years’ service (up to 20 years max). Weekly pay is based on the average over the previous 12 weeks (sometimes capped). See https://www.gov.uk/calculate-your-redundancy-pay

Only large businesses need to go through a consultation procedure before making redundancies. No?

Consultation is a key part of a fair redundancy process regardless of the size of the business or number of redundancies, as it gives employees the employees chance to have their say and avoid their dismissal if possible.

Is there a risk?

With any dismissal there is always a risk, but this can be significantly mitigated by following a robust process and meeting your legal obligations. Treating people fairly and with respect is important too.

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