16 Jan 2008


Print	Email

Managing redundancy

I have to make one of my employees redundant and I want to be sure I follow the correct procedures. Can you advise me on the necessary steps?

One of the most important things to remember with redundancy is that it’s not the individual but the job which must be redundant.

If there’s the possibility of placing your employee in another role, with or without training, then you must consider this, as employees can object to redundancy if alternative employment was unreasonably refused.

You must also be sure to give your employee reasonable time off on full pay for job hunting or to arrange training.

• Basing your redundancy claim around four key elements should ensure you are following the proper procedures

• Giving as much warning as reasonably possible

• Consulting with affected employees (and trade union or employee representatives where relevant

• Having a good selection system ¬ selecting staff fairly and without discrimination

• Following statutory dismissal procedures. Although it’s not a statutory requirement to consult employees if you are making less than 20 employees redundant within a 90-day period, employment tribunals expect fair consultations

• So give your employee the opportunity to fully understand the matters on which they’re being consulted and time to express their views, and then genuinely consider these views.

If your employee has been working for you for two years or more then they are entitled to a minimum statutory payment which is free of tax and national insurance contributions and calculated through a combination of length of continuous service (maximum of 20 years), weekly pay and age.

The entitlement is: for each complete year of work below the age of 21 years ¬ half week’s pay; between 22-40 inclusive ¬ one week’s pay; 41 and over ¬ one half week’s pay.

However, for shift workers without ³normal working hours² the weekly pay is calculated by taking the average weekly earnings over the 12 week period ending on the last day worked under contract.

Finally, you must give notice as stated in the contract of employment, giving details for dismissal in writing, inviting a meeting and giving the right of appeal.

Email this to a friend