Managing Redundancies
Managing redundancies is complicated – if you’re unsure, you’re better not to go it alone
Support for Managing Redundancies
Need to manage redundancies and looking for some help?
There are some elements of HR where you can do some research and be confident in moving a situation forward. This really isn’t something that we would recommend with redundancy.
Redundancy situations can be very complex and difficult to manage. There is a very strict process that you need to follow when it comes to dealing with redundancies. You also need to understand what constitutes a genuine redundancy situation.
When you start a redundancy process you’ll need to define the business rationale for the reasons for the redundancy. There’s the need to determine which roles are at risk of redundancy and therefore the people with whom you need to consult. Then you need to determine how you will select the individuals who are going to stay with the business and those who will leave. Then there’s all of the documentation that you need to have in place.
There’s a lot to think about and a lot that can go wrong. Let us use our experience to help you.
For more details, see our Employee Redundancy FAQ
Key Service Features
for Managing Redundancies
Support from a CIPD qualified HR consultant assigned to your business
Compliant with UK Employment Legislation and the ACAS Code of Practice
Pragmatic approach to get the appropriate outcome with minimal risk
How We Can Help You
When it comes to redundancy, there are lots of different ways we can help you.
- We can talk you through what’s going on in your business and the process that you need to follow. We can then provide you with the documentation that you need and you can conduct the process yourselves. We’ll be on the side-lines ready to help with any issues that arise along with the way.
- Alternatively, you can outsource the process to us. In this scenario, we’ll work with you to understand exactly what you’re looking to achieve. Then, we’ll help you create the business rationale but then we’ll run the process for you. We’ll conduct the necessary meetings with your team and create and issue all of the documentation. We’ll liaise with you closely throughout the entire process and ensure that you have the information you need to make decisions.
Ultimately, we can be as involved or as invisible as you like.
“As a small business owner with developing needs and challenges, it’s been invaluable having a trusted partner on hand to guide and advise us.
LighterHR gives us confidence to make clear, concise decisions.
Ian Tomalin-Hall
CEO, Grammatik
Managing Redundancies Frequently Asked Questions
What is redundancy?
This may seem obvious but redundancy in an employment setting has a strict legal definition which is:
- the employer ceases to carry on the business in which the employee was employed; the employer ceases to carry on that business in the place where the employee was employed;
- the needs of the business for employees to carry out work of a particular kind cease or diminish; or
- the needs of the business for employees to carry out work of a particular kind in the place where the employee was employed cease or diminish.
You’ll notice that what’s missing from that list is “Someone’s not very good at their job”!
We get lots and lots of calls from clients around “X isn’t very good so we’re thinking of making them redundant”. This just isn’t appropriate (or legal!). If someone is under-performing then you need to follow a performance management approach. Alternatively, you can consider having a protected conversation, but redundancy isn’t the way to go.
The redundancy process is complicated and designed to address the scenarios listed above. If you try to use it as a way to manage out someone who is performing poorly, you’re likely to come unstuck very quickly and find yourself in a very difficult position.
I’m worried that I haven’t acted ‘by the book’…..
If you’re reading this question in a redundancy situation then it’s possible that you’ve made a start with a redundancy process and have got some push back from employees and you’re now unsure how to move forward.
Equally, it could be that there’s been something happen in the past that you’re not sure you dealt with properly and you’re now concerned that it may come to bite you when you start the redundancy process.
Whatever the situation, tell us about it, and we’ll help you to find a way forward.
Is managing this redundancy process going to take up a lot of my time?
When it comes to the redundancy process the area that is most time consuming is the planning. If you’re using our redundancy support service then we’ll make sure that you’ve considered all of the appropriate things before you get started and we’ll make sure that you have a solid business case as to why it is that you are considering redundancy.
We can save you time by completing the documentation on your behalf, running the calculations for you to approve and even conduct the meetings for you. We’ll just need to make sure that you’re available to answer any specific questions that come up and we’d encourage you to attend the final meetings as employees appreciate hearing from their manager directly what the outcome is.
Can you reduce the risk of an employment tribunal claim?
Reduce it – yes.
Remove it – no.
We need to be clear and honest here – there is nothing that anyone can do that will remove the risk of an employment tribunal claim altogether.
When it comes to redundancy, the main employment tribunal risk is that you don’t follow the correct process and employees bring claims for unfair selection for redundancy which is a type of unfair dismissal. There could also be allegations of discrimination that are rolled into that claim. It can get expensive and time consuming.
Whilst we can’t remove the risk entirely, we will work with you to ensure that the risk is managed.
The biggest contributing factor in an employee raising an employment tribunal claim is how they feel they have been treated. Redundancy situations can be difficult and emotional, particularly when you’re in the middle of it all. This is the first way in which we can help. By being external and independent we can start to remove the emotion and get to the facts. We can help employees to understand why the redundancies are required and support them through the process. Whilst they may not like the outcome, by following a fair, transparent and thorough process, employees will most likely be accepting of the decision.
What Do I Do Now?
No matter where you are with your redundancy process, we can provide the support you need when you need it.
To understand the options for support with managing redundancies, use the sidebar to book a consultation, complete the contact form or call us on 0203 535 5750, and our team will start helping you straight away.