When it is necessary to streamline your business, making choices regarding redundancies can be the most difficult part of the procedure. The regulations concerning redundancy can seem like a potential minefield of possible litigation.

Making sure you follow the rules can not only protect you from costly tribunals, but make the whole process less emotional for all involved.

Your number one consideration is to ensure that your employees are informed every step of the way. Failure to consult with employees, or their representatives, during the procedure not only results in uncertainty and fear within the workforce: it will almost certainly render any redundancies unfair – opening up the possibility of expensive tribunals.

It should also be remembered that it is the job that is made redundant – not the person. Regardless of the job description – whether it was a manual operation superseded by technology or a position that is no longer required due to other situations, the job itself must cease to exist when the person leaves. Regardless of what may be the message you have been given, it is legally okay to employ new people when others have been made redundant. What you must ensure, though, is that these new jobs fulfil different requirements and that the skills required do not exist within your present workforce.

Once you have worked out that there is in fact a need to make redundancies, there are a number of stages in the procedure that must be adhered to so that your obligations as an employer are met.

Working Out the Criteria For Redundancy

The main reason why redundancy should be considered is so that your workforce is as effective and streamlined as possible to ensure the success of your business. Deciding upon clearly defined selection criteria is the fairest way to make sure that all employees are treated equally, especially in regards to the way in which they can bring benefit to the company. Some suggested criteria you can consider include the following:

* Adaptability – this is especially important if your company is moving into a new sphere or market in order to progress: you will need to retain those employees who can cope best with change and have the ability to adapt.

* Skills – keeping a good cross section of skills can help keep your workforce balanced and effective.

* Performance ” it is a wise move to retain your hardest-working employees. You will require documented evidence to support your decisions to avoid potential complaints of unfair treatment.

* Attendance ” this is a valid criterion only when it is applied fairly and consistently. Remember that it is not fair to use lack of attendance due to maternity, paternity or adoption leave.

Ideally, so as to make sure that the selection process is as fair and equal as humanly possible, a combination of the above criteria can be used.

Consultation With Employees

Consultation is a vital part of the redundancy process. This is because it will minimise the likelihood of unfair dismissal claims and it will also ensure that you retain those members of the team who are motivated through your transparent communication.

If it is possible you will be making more than 20 positions redundant within a 90-day period, you will also be required to inform the Department for Business, Enterprise and Regulatory Reform.

Rumours and speculation will quite often run rampant during times of redundancy. As a result, you should be prepared to be as open and honest as possible in order to avoid unnecessary confusion. In particular, inform those at risk at the earliest possible stage of the reasons for the redundancies, the positions and departments likely to be affected, the approximate number of employees at risk and what criteria you will be considering in the selection procedure. It is also important that you keep them informed of the time line of events.

Contact each individual who is at risk, explaining your reasons for considering them for redundancy and organising a meeting to discuss the situation. If you do not arrange this, you will automatically be accused of unfair dismissal.

If you continue to communicate openly with both at risk staff and those who will be staying behind throughout the process, it will help to keep negative emotions to a minimum and reduce the possibilities of claims of unfair dismissal.

Assistance

Whilst you are not legally required to do so, it is thought to be good practice to give as much practical assistance to those who have been chosen for redundancy as possible. This could be in the form of offering help regarding looking for alternative employment, guidance on CV writing and interview techniques or advice on financial planning in the meantime. Offering such assistance will help to maintain good relationships even with those employees who are leaving: once again, minimising the likelihood of complaint or legal action.

The procedure of making redundancies can be a very difficult task, particularly if you are not aware of its emotionally charged nature or of the possible legal ramifications.