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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.
In the first instance alternatives to avoid redundancies e.g. seeking volunteers should be considered.
Employers must be clear on why a redundancy situation is proposed. Work must have ceased or diminished in some way, or be expected to.
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/ 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.
Employees have a right to be consulted individually about why they have been provisionally selected for redundancy prior to any decision being taken.
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.
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.