Here is a simple step-by-step guide to navigating redundancy in the UK:
- Identify Redundancy Needs – Analyse the business needs and identify the roles that are no longer necessary.
- Speak to Trade Unions – In situations where more than 20 people may be made redundant, you must consult with trade unions or organise employee representatives.
- Consult with Employees – Notify the employees whose roles are at risk of redundancy and give them the opportunity to raise concerns and provide feedback.
- Develop a Fair Selection Pool and Criteria – Identify an objective, fair and non-discriminatory selection pool and criteria that will be used to decide which employees will be made redundant.
- Inform Possible Redundancy Candidates – Write to all employees who are at risk of redundancy and explain the whole process.
- Open Voluntary Redundancy Application – Explain the process of voluntary redundancy and what individuals can expect if they choose to put their name forward.
- Complete Individual Consultation Meetings – speak to each person that is at risk of redundancy and explain the process again, giving them to question the process and highlight any concerns, take suggestions, and explain voluntary redundancy.
- Complete Scoring – Use a selection matrix to evaluate and score each employee individually and provide them with a copy of their score sheet. Inform them of the break point, which is the score above which their jobs are considered secure. Hold regular meetings with employee representatives to discuss potential measures to prevent redundancies.
- Undertake Further Consultation – Hold a second consultation meeting with all employees whose scores fall below the established cut-off. Review their scores and give them the opportunity to explain if they believe they were scored unfairly. Listen carefully to their explanations and consider adjusting their scores if they provide valid reasons.
If an employee’s scores are adjusted to a point where they surpass the cut-off, resulting in another employee falling below the cut-off, hold another consultation meeting with the newly impacted employee.
Ask if they would like to be considered for any specific positions and request them to provide feedback within the next few days. If the employee’s explanations and arguments are not accepted, make sure to document them along with the reasons for not accepting them.
- Complete Consultation and Give Notice – Hold a third and final consultation meeting with the employees to inform them that their selection for redundancy has been confirmed, and they will be given notice. If suitable alternative employment has been identified, explain the options, and offer it to them. If not, inform them that efforts to find alternative employment will continue until the end of their notice period.
Provide information regarding notice pay, redundancy payment, and any other payments that may be applicable. Communicate their final day of work, and if they have any outstanding holiday, consider if it can be taken during their notice period.
- Provide an Appeal Process – Offer an opportunity to the employees who have been selected for redundancy to appeal the decision through a fair and unbiased appeal process.