Redundancy
Unfortunately, any employer organisation is subject to the commercial realities of the larger world, therefore may need to lay off staff from time to time in order to adapt to changing economic demands. However, effective communication between management and employees will likley make the process less difficult.
The right to be collectively consulted, either directly or via representatives, applies when an employer proposes to make 20 or more employees redundant over 90 days or less. In this case, the law defines redundancy as:
'dismissal for a reason not related to the individual concerned or for a number of reasons all of which are not so related.' This definition might include, for example, a situation where dismissals aren't related to the conduct or capability of the individuals.
Employees are entitled to redundancy payments if they are dismissed due to one of the following:
- the employer has ceased, or intends to cease, to carry on the business for the purposes of which the employee was so employed
- the employer has ceased, or intends to cease, to carry on the business in the place where the employee was so employed
- the requirements of the business for employees to carry out work of a particular kind has ceased or diminished or are expected to cease or diminish
- the requirements of the business for the employees to carry out work of a particular kind, in the place where they were so employed, has ceased or diminished or are expected to cease or diminish
Examples of such criteria:
- attendance record (if this is fully accurate and reasons for and extent of absence are known)
- disciplinary record (if this is fully accurate)
- skills or experience
- standard of work performance
- aptitude for work
Formal qualifications and advanced skills should be considered, but not in isolation.
When are redundancies 'unfair'?
You will be found to have been unfairly dismissed if you were unfairly selected for redundancy:
- for asserting a statutory employment right
- on parental leave (see Working parents) or maternity-related grounds
- because you work part-time (Part-time work)
- because you are a fixed-term worker (Employment contracts)
- for exercising or seeking to exercise the right to be accompanied at a disciplinary (Discipline) or grievance hearing (Grievances)
- requesting flexible working arrangements
- for a reason relating to rights under the Working Time Regulations 1998
- for a reason relating to rights under the National Minimum Wage Act 1998
- for a reason relating to the Tax Credits Act 2002
- for Whistle-blowing
- for participation in trade union activities, for membership or non-membership of a trade union and in respect of trade union recognition or derecognition
- for carrying out duties as an employee representative or candidate for election for purposes of consultation on redundancies or business transfers
- for taking part in an election of an employee representative for collective redundancy purposes
- for taking action on health and safety grounds as a designated or recognised health and safety representative, or as an employee in particular circumstances
- for taking part (or proposing to take part) in consultation on specified health and safety matters or taking part in elections for representatives of employee safety
- for taking lawfully organised industrial action lasting eight weeks or less (or more than eight weeks in certain circumstances)
- for refusing or proposing to refuse to do shop work or betting work on Sundays (England and Wales only)
- for performing or proposing to perform the duties of a occupational pension scheme trustee
- for performing or proposing to perform the duties of a workforce representative for the purposes of the Transnational Information and Consultation of Employees Regulations 1999
or if the selection criteria employed were deemed to be discriminatory under any of those grounds prohibited by law.
Should my employer help me to find other work?
In addition to allowing time off to look for new work or for training (Time off), it's good practice for employers to give redundant employees as much information as possible to help them at this difficult period of their working lives. Such information may include:
- the financial effects of redundancy on the individual (redundancy pay, pension payments and state benefits)
- how to complete application forms and present themselves at job interviews
- the importance of discussing the implications of redundancy with their family as early as possible
- how to search for appropriate vacancies in the press and follow up opportunities
- the importance of being prepared to consider a wide range of alternative jobs
In addition, where resources permit, your employer may offer with individual counselling, ideally before redundancies take effect. This would ideally be with a trained counsellor or welfare officer to carry out the interviews, but where that is not practicable, HR managers may be given appropriate training for the task. Where possible, some support and advice should remain available to redundant employees after their dismissals.
What information must my employer disclose about proposed redundancies?
To ensure employee representatives can play a useful part in the consultation process over proposed redundancies your employer must disclose certain information in writing including:
- reasons for the proposed redundancies
- numbers and descriptions of employees affected
- proposed method of selecting the employees who may be dismissed
- proposed method of carrying out the dismissals, taking account of any agreed procedure, including the period over which the dismissals are to take effect
- how redundancy payments, other than the legal minimum, will be calculated
What if my employer fails to consult about proposed redundancies?
In cases where employers have failed to consult with employee representatives over proposed redundancies an employment tribunal can make a 'protective award'. The employer is required to pay employees covered by a protective award their normal week's pay for each week of a specified period, known as the protected period, regardless of whether or not they are still working. To be covered by an award, you must:
- belong to a group specified in the award
- be someone your employer plans to dismiss or has already dismissed as redundant
- be someone for whom your employer has failed to comply with the information and consultation requirements