When the time comes to streamline your business, making redundancies can be the hardest part of the process. The regulations surrounding redundancy can feel like a minefield of potential litigation.
When you make sure that you are sticking to the rules you will not only protect yourself from costly tribunals: you will ensure that the whole process is less emotional for everyone involved.
Perhaps the most important consideration is to keep your employees informed at all times. Failure to consult with employees, or their representatives, throughout the process not only leads to uncertainty and fear within the workforce, but will almost certainly make any redundancies unfair - paving the way for expensive tribunals.
It should also be remembered that it is the job that is made redundant - not the person. Regardless of the job description - whether it was a manual operation superseded by technology or a position that is no longer required due to other situations, the job itself must cease to exist when the person leaves. Regardless of what may be the message you have been given, it is legally okay to employ new people when others have been made redundant. What you must ensure, though, is that these new jobs fulfil different requirements and that the skills required do not exist within your present workforce.
Once you have worked out that there is in fact a need to make redundancies, there are a number of stages in the procedure that must be adhered to so that your obligations as an employer are met.
Establishing The Criteria For Redundancy
The objective of redundancy should be to create an effective, streamlined workforce that are best able to take your business forward. Establishing well defined criteria for selection is the most effective way of ensuring that all employees are treated equally, and their benefit to the company is properly assessed. The criteria you use may include:
* Adaptability - particularly if your company is moving into a new area or market in order to move forward, you may need to retain those staff who are most comfortable with change and have the ability to adapt.
* Skills " maintaining a good cross section of skills will assist you in maintaining a balanced and effective workforce.
* Performance " it is a wise move to retain your hardest-working employees. You will require documented evidence to support your decisions to avoid potential complaints of unfair treatment.
* Attendance - this is a valid criterion if applied fairly and consistently. Remember that you cannot use lack of attendance due to maternity, paternity or adoption leave.
Ideally, in order to ensure that the selection process is a fair and equal as possible, a combination of the above criteria should be used.
Consultation With Employees
Consultation is a vital part of the redundancy process. This is because it will minimise the likelihood of unfair dismissal claims and it will also ensure that you retain those members of the team who are motivated through your transparent communication.
If it seems to be the case that you will be making more than 20 positions redundant within a 90-day period, you will also be required to inform the Department for Business, Enterprise and Regulatory Reform.
Rumours and speculation are unavoidable in times of change such as these. It is extremely important, therefore, to be as open and honest as possible so as to avoid unnecessary confusion. You should let those at risk know at the earliest possible point the reasons for the redundancies, the positions and departments affected, the likely number of employees at risk and the specific criteria you will be using in the selection process. You should also make sure that they are informed of timescales.
Contact each employee who is at risk, explaining your reasons for considering making them redundant and arranging a meeting to discuss the situation. Failure to do this will automatically make any dismissal unfair.
If you continue to communicate openly with both at risk staff and those who will be staying behind throughout the process, it will help to keep negative emotions to a minimum and reduce the possibilities of claims of unfair dismissal.
Offering Assistance
Whilst it is not a legal requirement, it is considered good practice to give as much practical assistance to those who have been selected for redundancy as possible. This may include offering help on looking for alternative employment, guidance on CV writing and interview techniques, and advice on financial planning in the interim. Smoothing the path out in this way will help to maintain good relationships even with those employees who are leaving " again reducing the likelihood of complaint or legal action.
Remember that the procedure of making redundancies can be an emotional task and can be a litigious nightmare if not done correctly and sensitively.
When you make sure that you are sticking to the rules you will not only protect yourself from costly tribunals: you will ensure that the whole process is less emotional for everyone involved.
Perhaps the most important consideration is to keep your employees informed at all times. Failure to consult with employees, or their representatives, throughout the process not only leads to uncertainty and fear within the workforce, but will almost certainly make any redundancies unfair - paving the way for expensive tribunals.
It should also be remembered that it is the job that is made redundant - not the person. Regardless of the job description - whether it was a manual operation superseded by technology or a position that is no longer required due to other situations, the job itself must cease to exist when the person leaves. Regardless of what may be the message you have been given, it is legally okay to employ new people when others have been made redundant. What you must ensure, though, is that these new jobs fulfil different requirements and that the skills required do not exist within your present workforce.
Once you have worked out that there is in fact a need to make redundancies, there are a number of stages in the procedure that must be adhered to so that your obligations as an employer are met.
Establishing The Criteria For Redundancy
The objective of redundancy should be to create an effective, streamlined workforce that are best able to take your business forward. Establishing well defined criteria for selection is the most effective way of ensuring that all employees are treated equally, and their benefit to the company is properly assessed. The criteria you use may include:
* Adaptability - particularly if your company is moving into a new area or market in order to move forward, you may need to retain those staff who are most comfortable with change and have the ability to adapt.
* Skills " maintaining a good cross section of skills will assist you in maintaining a balanced and effective workforce.
* Performance " it is a wise move to retain your hardest-working employees. You will require documented evidence to support your decisions to avoid potential complaints of unfair treatment.
* Attendance - this is a valid criterion if applied fairly and consistently. Remember that you cannot use lack of attendance due to maternity, paternity or adoption leave.
Ideally, in order to ensure that the selection process is a fair and equal as possible, a combination of the above criteria should be used.
Consultation With Employees
Consultation is a vital part of the redundancy process. This is because it will minimise the likelihood of unfair dismissal claims and it will also ensure that you retain those members of the team who are motivated through your transparent communication.
If it seems to be the case that you will be making more than 20 positions redundant within a 90-day period, you will also be required to inform the Department for Business, Enterprise and Regulatory Reform.
Rumours and speculation are unavoidable in times of change such as these. It is extremely important, therefore, to be as open and honest as possible so as to avoid unnecessary confusion. You should let those at risk know at the earliest possible point the reasons for the redundancies, the positions and departments affected, the likely number of employees at risk and the specific criteria you will be using in the selection process. You should also make sure that they are informed of timescales.
Contact each employee who is at risk, explaining your reasons for considering making them redundant and arranging a meeting to discuss the situation. Failure to do this will automatically make any dismissal unfair.
If you continue to communicate openly with both at risk staff and those who will be staying behind throughout the process, it will help to keep negative emotions to a minimum and reduce the possibilities of claims of unfair dismissal.
Offering Assistance
Whilst it is not a legal requirement, it is considered good practice to give as much practical assistance to those who have been selected for redundancy as possible. This may include offering help on looking for alternative employment, guidance on CV writing and interview techniques, and advice on financial planning in the interim. Smoothing the path out in this way will help to maintain good relationships even with those employees who are leaving " again reducing the likelihood of complaint or legal action.
Remember that the procedure of making redundancies can be an emotional task and can be a litigious nightmare if not done correctly and sensitively.
About the Author:
Katherine Wiid is a specialist in employment and redundancy and has written many articles specifically about the complex Redundancy Selection process. For further information on Redundancy Procedure, check out the website.
ไม่มีความคิดเห็น:
แสดงความคิดเห็น