Employers may need to consider redundancies for a variety of reasons, including a downturn in business or relocation. A key aspect of any redundancy process is the consultation period. Adhering to your legal obligations in connection with consultation periods is essential in ensuring you treat staff fairly and avoiding unfair dismissal claims. The legal requirements applicable to the redundancy consultation period for 1 person UK differ from those that apply when your plans involve 20 people or more.
At GAP HR, our expert HR advisors specialise in assisting small businesses, particularly those that are owner-managed, in navigating their legal duties as employers. We will review your redundancy proposals and ensure they comply with the applicable rules and regulations.
What Is Redundancy?
Redundancy is a form of staff dismissal. However, it does not arise because of any wrongdoing or performance-related issues on the part of the employee. It comes about because the role for which the person is employed is no longer needed by the business.
When Can You Make A Person Redundant?
You must only make a person redundant when their situation is one of genuine redundancy. Any other issues, such as misconduct or poor performance, must be addressed in accordance with your organisation’s policies governing them.
You may make a person redundant if one of the following circumstances apply:
- Your business is relocating.
- Your business is closing.
- The employee’s role is no longer needed, for example, because new systems have streamlined your processes.
Before you commence a redundancy process, you must be sure that the situation qualifies as genuine grounds for redundancy. If you get it wrong, you run the risk of facing an unfair dismissal claim. Speak to us if you are unsure. We will consider your situation and advise on the best way to achieve your goals.
What Is A Redundancy Consultation Period?
A redundancy consultation period is your chance to discuss your proposals with the employees affected by them. You must not go into a consultation with preconceived ideas; the process must be genuine and meaningful.
During the consultation, you should explain to the employee why their role may be affected and listen to any ideas they have about how the business might avoid having to make redundancies, reduce the number of redundancies required, or support those selected for redundancy. You are not obliged to implement the suggestions, but you must give them serious consideration.
How Long Should A Redundancy Consultation Period Be?
The redundancy consultation period for 1 person differs from that which applies to 20 or more people.
• Redundancy Consultation Period For 1 Person UK
There is no set redundancy consultation period for 1 person in the UK. The consultation only needs to last long enough to be ‘meaningful’. The longer you consult with employees, the more likely your consultation period is to pass the ‘meaningful’ test. If an employee selected for redundancy feels your decision was unfair and issues Tribunal proceedings against you, you stand a better chance of proving your process was fair if you held a thorough consultation.
How long a ‘meaningful’ redundancy consultation takes depends on various factors. In some cases, a period of 7 days may suffice. In other cases, more time may be needed to properly consider the issues and come to a fair, balanced decision. Working with experienced HR consultants like ours will ensure your consultation period is long enough to be deemed ‘meaningful’ and significantly minimises the risk of you falling foul of the rules and facing an unfair dismissal claim.
• Redundancy Consultation Period For 20 Or More People UK
The redundancy process you must undertake when 20 or more employees are affected by your proposals is more prescriptive than the one you should follow with respect to less than 20 people.
If you propose making between 20 and 99 employees redundant, your consultation period must last for at least 30 days from the first dismissal. If 100 or more people are affected, the minimum period is 45 days. There are no limits on how long your redundancy consultation period should be. You can take as long as you need to readh a fair decision.
Getting your redundancy process right, including incorporating the correct redundancy consultation period, is vital in achieving your commercial aims and remaining legally compliant. Any digressions from the applicable rules place you at significant risk of unfair dismissal claims from those employees selected for redundancy. At GAP HR, we have a proven track record of keeping our clients tribunal free with our straightforward advice and expert support.
Call us now on 01491 598 600 or email us on cw@gaphr.co.uk and we will be delighted to help you.
