If you do not follow a fair process when making redundancies, the affected employees could take you to an employment tribunal. The redundancy process for less than 20 employees is not as prescriptive as the one you must follow if your plans affect more than 20 workers, but it still must be fair.
Here, our HR specialists take you through the key steps in the redundancy process for less than 20 employees.
Call us now on 01491 598 600 or Click Here to Make An Enquiry and we will be delighted to help you.
Redundancy Process For Less Than 20 Employees Step-By-Step
Step 1: Confirm that the situation is one of genuine redundancy.
You can only make an employee redundant if their role no longer exists. If you make redundancies when they are not warranted, you may face unfair dismissal claims.
Step 2: Identify any viable alternatives to making redundancies.
You must consider whether your business goals might be achieved through means other than redundancies. For example, if your profitability has dropped, you could consider implementing a recruitment freeze, reducing working hours, or offering job shares to selected employees. If the part of the business the employee works in has ceased operating, you could consider redeploying them to another section.
Step 3: Identify the correct procedure.
If redundancies are unavoidable, you must identify the process you need to follow. For example, if your organisation has a redundancy process in place, you should follow that.
Step 4: Inform the affected employees.
It’s important to inform those affected by your redundancy proposals as soon as you can. This includes employees who aren’t at risk of redundancy but whose roles might be impacted by the changes. You should explain the reasons behind your redundancy proposals and detail the process you intend following.
Step 5: Hold consultations.
Consultations are a crucial step in any redundancy process, and getting them right is essential. The consultation process for less than 20 employees differs from the one you must follow when 20 or more people are affected.
When your plans affect fewer than 20 workers, you need only discuss the matter with the employees themselves. In some cases, though, it might be sensible to collectively consult despite not being legally obliged to do so.
You should plan what your consultations will include beforehand to ensure you cover everything relevant. Examples of the types of issues you should discuss with the affected employees or their representatives include the following:
- The reasons for your redundancy proposals.
- Any suggestions the employee or their representatives have for avoiding redundancies.
- What roles will remain after the restructure and the process for affected employees to apply for those roles.
Step 6: Issue the remaining roles and interview applicants.
Offer all remaining open roles that will be there after the restructuring to all affected employees. They should have a week to apply. Interview all applicants and confirm in their new role those that have been successful.
Step 7: Give those selected for redundancy their notice.
The employees who were not successful in applying for the remaining jobs, or did not apply at all, are entitled to notice. You should call a meeting with each person to explain why they were chosen, how much money they will be paid, how long their notice period is, and when their employment will end. You must also inform them of their right to appeal your decision.
How We Can Help
Employment law is full of traps for the unwary, and failing to follow the correct redundancy process can expose your business to lengthy, expensive, unfair dismissal claims. At Gap HR, we have an outstanding track record of keeping our clients tribunal free by ensuring their HR practices are fair and above reproach. With decades of experience in supporting small businesses across a range of sectors, including hospitality, sports and leisure, and professional services, you can be confident of receiving the very best HR and employment law advice coupled with exceptional client care.
Call us now on 01491 598 600 or Click Here to Make An Enquiry and we will be delighted to help you.