"Tis the Season to be Jolly………" Ideally it would always be that way, but what happens if you are facing a downturn in trade or other matters impacting on your business meaning you may have to make redundancies either during the Christmas Period or in the New year?
How do you ensure a fair redundancy procedure is carried out to minimise claims?
How do you keep morale up during this time?
In this on-demand webinar Caroline Acton from Consilia Legal has explored the law surrounding redundancies, the procedure to be carried out to help keep your company out of the employment tribunal arena and also offer some commercial advice to a company facing such a tricky matter during the holiday season.
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5. Disclaimer
These materials and the information contained within them are
designed solely for the use of participants on our courses. These
materials shall not be copied or reproduced in any format
whatsoever without the prior consent of Consilia Legal LLP.
The content of these materials and any commentary on the law
contained within the materials is provided free of charge for
information purposes only. Every reasonable effort is made to
make the information and commentary accurate and up to date,
but no responsibility for its accuracy and correctness, or for any
consequences of relying on it, is assumed by the author, the
publisher or Consilia Legal LLP.
The information and commentary does not, and is not intended to,
amount to legal advice to any person on a specific case or matter.
6. Redundancy
• Definition of Redundancy
• Fair dismissal
• Redundancy Process
• Redundancy Payments
• Claims
• Points to Remember
8. Fair Dismissal
• 2 year qualifying service
• Fair reason for dismissal – s.98 ERA
1996
• Follow a fair and reasonable process –
s.98(4) ERA 1996
9. Fair dismissal continued…..
• Redundancy must be the real reason
• The employer must act reasonably in
treating redundancy as the reason for
dismissal – procedural fairness
10. Number of Redundancies?
• Establish how many redundancies are
being proposed:
• If 20 or more redundancies are being
proposed in a 90-day period then
collective consultation obligations arise
• If fewer than 20 redundancies are being
proposed then it will be necessary to
follow a fair procedure in relation to
each employee
11. Collective Consultation
• TULRCA
• Inform and consult with appropriate
employee representatives
• 100 or more redundancies proposed –
45 days consultation
• For more than 20 but less than 100
redundancies – 30 days consultation
• Notify the Secretary of State
• Protective Award
12. Process
• Consider appropriate pool
• Establish objective selection criteria
- performance and ability
- length of service
- attendance records
- disciplinary records
- LIFO
• Voluntary redundancies
• Alternative vacancies
13. Process Continued…
• Meet with all employees who might be
redundant
• Discuss the next stages
• Minute the meeting
• Confirm content of the meeting in
writing
14. Process Continued
• Carry out scoring exercise
• Two line managers to conduct
• Write to employees who have been
provisionally selected
• Invite to a further consultation meeting
• Right to be accompanied
• Hold meeting
• Listen to employee
• Minute the meeting
15. Process Continued
• Follow up the meeting
• Hold a second consultation meeting
• Right to be accompanied
• Confirm decision reached
• Minute meeting
• Confirm decision in writing
• Right of appeal
16. Redundancy Payments
• Statutory redundancy payment:
- 2 years’ or more service
- based on employee’s age, length of
service and weekly pay
(currently capped at £475)
• Enhanced redundancy packages?
• Notice and accrued but untaken holiday
pay
18. Claims?
• 3 month time limit generally
• ACAS Early Conciliation now and tribunal
fees
• Unfair dismissal – compensatory award is
capped at either 12 months pay or £78,335
(whichever is lower)
• Polkey
19. Tips
• 2 year rule
• Is it a genuine redundancy scenario?
• Keep employees informed
• Consult
• listen
• Include absent employees in the process
• Ask for volunteers
• Paper trails
• Be fair and consistent
22. Discussion and Q&A on Redundancy & the Law
By: Marie Walsh
On: 27th January 2016 @ 13:00
Running in partnership
with the CIPD North
Yorkshire Branch
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