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1. MANAGING REDUNDANCY < 20 EMPLOYEES
Ensure the reason for beginning the process falls within the statutory
definition of redundancy.
Produce a rationale that clearly identifies the reason for the proposed
redundancy exercise (and why it is being proposed in preference to possible
alternative means of achieving the same objective), those at risk, the
PREPARATION
appropriate selection process and any potential alternative employment that
might be available within the organisation.
Determine whether volunteers will be sought and ‘bumping’ considered.
Prepare a timetable for the process.
Decide how employees will be notified of the potential redundancy situation
(group meeting, individual meeting or in writing).
If more than 1 employee is considered “at risk”, collectively advise them of
the potential redundancy situation, the reasons for it and the process to
ANNOUNCEMENT follow via a verbal announcement.
Follow-up with written confirmation to each “at risk” employee.
Where appropriate, originate objective and quantifiable selection criteria (to
SELECTION the extent that this is possible) and score employees against those criteria.
Hold individual consultation meetings (suggest two) with employees
provisionally selected for redundancy and…
Review the selection process and scores (where this has taken place);
Consider and respond to any suggested alternatives presented by
CONSULTATION employee(s);
Advise of any suitable alternative employment;
Provide the “at risk” employees with a financial statement detailing the
payments they will be due in the event that their employment is
terminated on the grounds of redundancy.
Write to those employees confirming their position within the Company (e.g.
no longer at risk; notice of redundancy; suitable alternative work; alternative
TERMINATION work and details of any trial periods).
Provide right of appeal where appropriate.
NB. ALL OF THE ABOVE STAGES SHOULD BE FULLY DOCUMENTED
Redundancy is a complex procedural matter and specific advice should be
sought in respect of each individual situation.
OTHER ISSUES
Where it is proposed to make 20 or more redundancies, a different
consultation process must be adhered to (contact EML for further details).
MOST EMPLOYERS ARE CLEAR ON WHEN REDUNDANCY APPLIES, BUT LESS SO ON MATTERS OF RE-
ORGANISATIONS/RESTRUCTURES WHERE WORK IS TO BE CARRIED OUT UNDER DIFFERENT TERMS & CONDITIONS
OR BY OTHER EMPLOYEES – CONTACT EML ON 01942 727200 FOR FURTHER ADVICE ON SUCH SITUATIONS
Disclaimer: This flowchart provides information about due process in relation to individual redundancy © Employee Management Ltd 2011
exercises. However, information is not the same as legal advice and although we have gone to great Suite 8, Stone Cross Place, Stone Cross Lane North, Lowton Warrington WA3 2SH
lengths to ensure that the information here is both accurate and useful, we would urge you to contact us Tel: +44(0)1942 727 200 Fax: +44(1)1942 727 225
for further advice on whether its interpretation / application is appropriate to particular situations. Email: eml@employeemanagement.co.uk Web: www.employeemanagement.co.uk