Redundancy Policy & Procedures

Welcome to the Redundancy Section for employers, here you'll find lots of interesting and useful information regarding disciplinary procedures.

Redundancy Home
Introduction
Legal Requirements
Information to be supplied to Unions and Employee Representatives
Group Redundancies
Issuing of Notices of Termination
Appeals
Redundancy Calculations

Group Redundancies

When more than one subsidiary company in a group is proposing redundancies as part of group policy, the numbers of employees proposed for dismissal in each company governs the period for consultations. 

Reduction in Workforce Procedure (downsizing/closure)

Communication by the Line Manager to the affected workforce takes place as early as possible. It is essential the appropriate TU and/or Employee Representatives are briefed first in accordance with the collective redundancy consultation requirements. Please see the nature of collective consultation above.

The content of the communication for the wider workforce is agreed with the Human Resources Representative and the appropriate TU representatives and/or Employee Representatives prior to delivery. The content must be factual and informative with consideration being given to providing a channel for questions/answers after the briefing.

Employees should be briefed verbally within a group situation and the briefing documentation made available to those concerned. All affected employees are briefed within a 24 hour

period. The Line Manager also communicates with employees that are away on Company

business, on sick leave, on maternity leave, adoption leave, parental leave, paternity leave, special or other leave or on holiday or those who work from home.

After the briefing, consultation with recognised TU representatives and Employee

Representatives for the area is undertaken with a view to seek agreement on the process to be followed during the downsizing/closure. Consultation should be carried out even if the employees involved are not personally members of the Union , or do not wish to be represented.

The Selection Process

The Line Manager, in conjunction with the Human Resources Representative, consults with the Trade union and/or Employee Representatives, regarding the selection criteria - these must be relevant to the positions remaining as the business must retain the necessary skills which are required for the business in the future. The selection procedure should be systematic, consistent, non-discriminatory and justifiable (Appendix 10). When in a closure situation and there are no positions remaining the Redeployment Procedure should be followed - please refer to the Redeployment Policy and Procedure.

When consulting over the selection criteria process the following will need to be discussed:

•  The basis of the selection process i.e. which criteria are to be used, the categories of employees to be assessed and how the scores are to be awarded; and
•  How the process will be applied to ensure fairness, including how complaints by individuals about their scores will be addressed.
•  The method of selection should be either by criteria or by recruitment. Where there numbers of people fulfilling the same role selection criteria is recommended.

The basis of the process should be made known to employees before any selection is made. This is normally done at the first consultation meeting.

Selection criteria must be applied fairly and consistently so that each individual selected is identified by the same method of assessment. This includes objective means of assessment such as skills, knowledge and behaviour, capability and disciplinary records. Appendix 10 provides guidelines for selection criteria. These may be changed so that they are appropriate for different areas of the business. At least two managers must be involved in the selection process and a Human Resources Representative must verify the results of the selection process for consistency purposes.

Selection should be supported by documentary evidence and based on the views of at least two people, including the line manager, who have a good working knowledge of the employee and the criteria they are assessing. It is advisable for each assessor to make their own assessment individually before meeting to discuss their scores. Once agreement on scores is reached the final assessment should be recorded for each individual.

Individual employees should be given the following information as part of the consultation process:

•  What their point score is from the redundancy selection assessment
•  What the range of points are
•  Why he or she lost points against the 'average' for each criterion

Employees are not entitled to be given the scores of other employees in the selection pool.

Individual Consultation 

Individual consultation is likely to be particularly important if employees are not members of a recognised union; there is no recognised union for that group of employees or the employee is in a senior position. Even if collective consultation is on-going, the company must consult with individuals to avoid unfair dismissal claims. Individual consultation includes explaining why the employee's job is affected by redundancy and the reasons for their job being considered at risk. The selection criteria and any marks awarded should be explained to the employee. The employee should be allowed time to reflect and to respond, which may be a few days later, and the manager(s) has an obligation to consider any such responses. Consultation includes a discussion about alternatives to redundancy and alternative work. A second meeting should be held to confirm selection if no other solution is viable (Appendix 7). Notice of dismissal should not be issued until consultation is completed.

Employees will often be in shock when told their jobs are at risk and therefore it is advisable to have a staged approach to consultation. This gives employees the opportunity to absorb the news, consider their responses and decide what alternatives there may be. It is therefore advisable for managers to hold at least two meetings with individuals as part of the consultation process.

Guidelines for Individual consultation

Consultation with the trade union over selection criteria does not of itself release the employer from considering with the employee individually his or her reason for being identified for redundancy. The employee should be invited to at least two meetings as part of the individual consultation process. It is advisable to put both invitations in writing and give the employee a reasonable time to prepare. It is also good practice to have two people present at the meeting, apart from the employee and their representative. One of those present should take notes.

Appendix 12 contains guidelines for individual consultation and are based on best practice and designed to act as a check-list for managers.

Following the first consultation meeting all employees will be informed in writing that their position is "at risk" (Appendix 6). They will be sent another letter setting out the circumstances which lead the manager to contemplate dismissing the employee and invite the employee to a second meeting (below) (Appendix 7). The employee must be given a reasonable period of time to prepare for the second meeting. The second meeting should not be held until the employee has received this letter and had reasonable opportunity to prepare for the second meeting.

A letter confirming the outcome of the meeting and issuing notice of termination should then be sent to the employee, together with their right of appeal. (Appendix 8A). See below regarding issuing notice of termination.