Businesses and Redundancy: Five Key Questions28th Oct 2020
Many businesses are facing difficult decisions around redundancy.
How can employers ensure the redundancy process is fair? How can a solicitor help a business facing the prospect of making redundancies?
Here are five key questions we often get asked...
What Steps Must Employers Take During The Redundancy Process?
Employers must make employees aware of the redundancy process and explain it to them:
- How they will choose people for redundancy.
- How long it will take to make the decision.
- What meetings employees can go to and when.
Although there is no legal right to appeal when made redundant it is always good practice to do so.
How Can Employers Ensure The Redundancy Selection Process Is Fair And Doesn’t Discriminate?
Take all the relevant factors into consideration, particularly the protected characteristics under the Equality Act 2010.
What are protected characteristics? It is against the law to discriminate against someone because of:
- gender reassignment
- marriage and civil partnership
- pregnancy and maternity
- religion or belief
- sexual orientation.
What Would Be Considered A ‘Collective Redundancy’? How Does This Process Differ From The Standard Redundancy Process?
Collective redundancies are when an employer is proposing to dismiss as redundant 20 or more employees at one establishment.
Consultations must take place within a period of 90 days, at least 30 days before the first dismissal – or if more than 100 are to be made redundant then consultations must take place 45 days before the first dismissal.
There is no obligation for collective consultations if 19 or fewer employees are being made redundant.
What Would Be Considered An Unfair Dismissal?
It would be unfair dismissal when the employer:
- does not have a process
- does not meet employees individually
- meets employees only to tell them they are being made redundant
- does not provide information to the employees
- does have a ‘process’ but does not follow it (unless the employer has a good reason not to do so).
What Is The Best Advice You Would Give A Business That Is Making A Redundancy?
Always use fairness and transparency with whatever process you use.
Get Expert Legal Advice
Contact Coles Miller employment solicitor Hugh Reid for more information and advice on making redundancies.