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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
Redundancy Situation
Redundancy situations are defined by law. They are as follows:
• Closure of the business or
• Closure of the workplace where the employee worked, or
• Work or a particular kind has ceased or diminished, so that those workers are no longer needed or
• The work has not diminished but fewer employees are needed to do that work (e.g. a reorganisation has resulted in greater efficiency so that fewer employees are needed or new technology has replaced the need for certain employees).
If there is doubt as to whether a situation is a redundancy situation or not, managers must seek advice from the HR Department. Advice must always be sought for clarification of the following situations: reallocation of duties; same work but different terms and conditions; same work but performed by a different employee. Managers should always discuss with their HR Representative any proposals to amend terms and conditions as these will usually trigger the statutory consultation requirements, depending on numbers affected.
Redundancy Payments
A dismissed employee is only entitled to a redundancy payment if they have been dismissed wholly or mainly by reason of redundancy and have a minimum of two years continuous service. Redundancy will be presumed unless the contrary is proved.
Consideration of Alternatives to Compulsory Redundancy
The Company will, where possible, consider other options and means available to reduce the impact of possible compulsory redundancies where a workforce reduction is anticipated in a department and/or area - such as:
Redeployment / Alternative Work
In all circumstances the Company will seek to identify suitable alternative roles for individuals whose current role will no longer exist in its present form. If alternative employment is not available in the employee's current department then the employee may be placed on the redeployment register - please refer to the Redeployment Policy And Procedure.
Recruitment
If applicable, all recruitment within the affected area must cease in order to absorb surplus workforce. Normally the use of subcontract labour, temporary and casual staff must also be restricted if appropriate in the circumstances.
Working Arrangements
Line management should make every effort to minimise overtime, which may include re-organising shift teams. They should also consider the implementation of temporary lay-off, short-time working, job sharing, etc. where appropriate.
Inviting Applications for Voluntary Early Retirement
Line managers should refer interested employees to the Pension's Administrator for further information. Eligibility for early retirement will be dependent on individual circumstances in line with the rules of the Pension Fund.
Inviting Applications for Voluntary Redundancy
Line managers should determine whether voluntary redundancy is available. Authorisation for voluntary redundancy is at the discretion of the Directorate. If available this should be clearly communicated at the briefing sessions. Employees interested in taking voluntary redundancy should inform their Line Manager in writing. The Line Manager informs the human resources department who deal with the enquiry. Please note that the Company cannot guarantee all applications for voluntary redundancy will be granted. Requests will be considered in line with all the circumstances, including the requirements of the business, the individual role and the department's needs.
Where compulsory redundancy is inevitable the Company will endeavour to follow best practice.
Responsibilities
Line Management
As soon as the line manager is aware of a potential redundancy situation they must discuss this with their HR Representative.
The Line Manager's responsibilities are:
• To consult at the earliest opportunity with the recognised Trade Union representatives and/or Employee Representatives in the area.
• To take a pivotal role in ensuring that the selection process is managed in a fair and consistent manner for all their affected employees.
• To co-ordinate the process and be responsible for maintaining the relationship with the employees throughout the process.
• Be accountable for ensuring that the Human Resources Department is kept informed of all developments and that it receives copies of any other relevant information relating to the process .
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Executive Positions
