Sometimes, redundancy is the most sensible and practical decision for your business. However, as an employer, this process should be determined fairly and processed correctly or you run the risk of having an unfair dismissal case brought against you.
For employees who have worked for you for at least 2 years, the redundancy process needs to be followed but for employees below this threshold, official processes are not required but the redundancy should be completed fairly.
Here are some of the most important redundancy processes that you should know about according to UK employment law.
When is redundancy an option?
Redundancy is a business decision that usually takes place when a position or team within the company no longer exists. It’s a type of dismissal, however, letting someone go based on their performance or conduct is not part of redundancy and therefore needs to be done through a disciplinary meeting.
Redundancy may be considered if:
- The business is closing or has already closed.
- You are changing the types of roles required or the number of people needed.
- You are changing location.
How do you ensure that the redundancy process is fair?
Redundancy is not a fun process for you or your employees but never bypass your legal requirements. One important step to think about is selecting the specific employees who will be made redundant – you should use fair and reasonable criteria.
Examples of fair selection include:
- Some employers may use the ‘last in, first out’ method so newer team members are the first to be let go.
- Voluntary redundancy allows people to put themselves forward.
- A points system where all employees in the same role are ranked using a point system. The criteria may include skills, qualifications, the standard of work, attendance and more.
- Using disciplinary records.
At Swan Craig Solicitors, unlike other Bristol law firms, we not only advise on the legalities, but we also provide practical advice to help you understand the whole picture and what options are available to you. If you need employment law redundancy advice look no further than our professional team. Contact us today for more information.