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
Legal Requirements
There are a number of requirements that the Company must fulfil under current UK legislation:
Notification to the Secretary of State
• The Company is required to notify the DTI in advance whenever 20 or more employees are to be made redundant at one establishment. This notification is made on Form HR1 and is also copied to the appropriate union/employee representatives where applicable. The Human Resources Department issues this notification.
• The Company is obliged to begin the consultation process not only with employee representatives of employees at risk of dismissal, but also with representatives of employees who may be affected by the dismissals or by measures taken in connection with the dismissals, not just those who it is proposed to make redundant (for example, those taking on additional work) as specified in the Collective Redundancies and Transfer of Undertakings (Protection of Employment) (Amendment) Regulations 1999.
• Where the Company is proposing to dismiss 100 or more employees at one establishment this must take place at least 90 days before the first dismissal.
• Otherwise, at least 30 days before the first of the dismissals takes effect.
• Notification must be given to the Secretary of State before any notice of dismissal has been issued.
Consultation with Appropriate Representatives
The Company is obliged to inform and consult 'appropriate representatives' in a potential redeployment/redundancy situation. 'Appropriate representatives' are defined as:
• Employee representatives - employee representatives must be elected by employees and not appointed by management. The election can be by any means provided it is a fair and democratic process. The employee representatives must be employed in the relevant undertaking at the time of their election. Appendix 11 sets out the process for electing representatives.
• Elected representatives of recognised Trade Unions.
Where there is a recognised trade union the employer must consult with it. For those areas of the business where there is no recognised trade union, the company can use appropriate existing consultation mechanism rather than elected representatives, for example, if there are Works Council representatives. If employees do not appoint employee representatives, the Company can give the prescribed information in writing to individual employees.
The Nature of Collective Consultation
Consultation is not merely a process whereby managers impart information; it should be a proper and genuine process. Collective consultation includes consultation about ways of avoiding dismissals, reducing the number of employees to be dismissed and mitigating the consequences of dismissal and must be undertaken with a view to reaching agreement with the appropriate representatives.
Timescale for Collective Consultation
Where the Company is proposing to dismiss as redundant 20 or more employees at one establishment within a period of 90 days or less, the employer shall consult about the dismissals all the appropriate representatives of any of the employees who may be affected by measures taken in connection with those dismissals.
Consultation must begin in good time and in any event where the Company is proposing to dismiss 100 or more employees within 90 days or less, at least 90 days, and otherwise at least 30 days before the first dismissal takes effect. Consultation must be completed before notice of dismissal is given. However, consultation does not have to last for 30 or 90 days, it may be quicker or longer.
Employers are not obliged to consult with appropriate representatives in redundancy situations involving fewer than 20 employees. However, in line with best practice and the Company's commitment to ongoing partnerships with employees and their representatives consultation is strongly recommended.
