fingertip hr solutions logo
View Our Products:

fingertip login button
fingertip hr blog icon
Considering Redundancy Situations

Blog Posts

Understanding Annual Leave

Posted on 16 June 2021

Key holiday rights Part-time workers are entitled to the same level of holiday on a pro rata basis If an employee leaves they get paid for any holida... Continue reading >

Considering Redundancy Situations

Posted on 16 June 2021

In the current climate unfortunately there are a lot of businesses still struggling and it is difficult to predict recovery times.  As a result, redu... Continue reading >

Top Tips on Recruitment

Posted on 16 June 2021

1.   Define the Role and Person Requirements         Identify the key skills, attributes, and experience the role requires. Review any job ... Continue reading >

16
Jun, 2021

Considering Redundancy Situations

Posted by Helen in Redundancy Issues

In the current climate unfortunately there are a lot of businesses still struggling and it is difficult to predict recovery times.  As a result, redundancies may have to be considered and the winding down of the Coronavirus Job Retention Scheme may also have an impact. 

These are the key areas an employer needs to consider and work through to handle any potential redundancies.

 

Avoiding Redundancies

In the first instance alternatives to avoid redundancies e.g. seeking volunteers should be considered.

 

Defining Redundancy

Employers must be clear on why a redundancy situation is proposed.  Work must have ceased or diminished in some way, or be expected to.

 

Collective Consultation

Where 20 to 99 redundancies are proposed, collective consultation with a trade union or elected representatives must take place for 30 days before notice is served or before the first dismissal.  Where 100 or more employees redundancies are proposed this period is 45 days.

 

Selection Criteria

Selection/ scoring criteria must be applied where there is a pool of employees doing the same role.  Examples of criteria include attendance record, disciplinary record, job knowledge, job performance.

 

Consultation

Employees have a right to be consulted individually about why they have been provisionally selected for redundancy prior to any decision being taken.

 

Alternative Employment

Those employees at risk must be provided with details of any alternative employment opportunities available.

 

Statutory Redundancy Pay

Employees with more than 2 years’ service are entitled to statutory redundancy pay.  This is calculated depending on age, length of service and weekly pay.   

 

Notice

Where notice of redundancy is served, notice is paid to employees.  The entitlement is either contractual notice or statutory notice (one week for each complete year of service up to a maximum of 12 weeks), whichever is the greater.