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Managing redundancies is a difficult area for all concerned – not only the process itself but the resulting impact on culture and profitability following such a stressful period.  To ensure legal compliance throughout the redundancy process and avoid expensive penalties, here are some key steps to follow, to simplify the process:

  • Make sure there are no alternatives by considering natural attrition, reviewing costs, considering reduced working hours and/or pay or bonuses
  • Consult meaningfully with your staff with clear reasons and consistent to all
  • Choose potential roles to be made redundant carefully – those staff affected will be placed ‘at risk’ of redundancy
  • Tell people they are at risk and that you are starting a formal consultation period
  • Create a list of selection criteria
  • Conduct individual meetings with staff who are at risk
  • Score everyone who is at risk and make selection decisions
  • Hold second meetings with individuals and continue to consider alternatives
  • Hold a final consultation with staff
  • At the end of the Consultation period advise all in writing your conclusions and terminate the contracts of any staff whose roles are being made redundant
  • Allow an employee the right to appeal to ensure fairness all around
  • As a guide with timescales, the process should be reasonable but consider normal notice periods.  On average, one month is usually a fair timescale.

Redundancy Pay

There are varying levels of redundancy pay, based on age and length of service.

  • 0.5 week’s pay for each full year worked under 22
  • 1 week’s pay for each year worked between 22 and 41
  • 1.5 week’s pay for each full year worked aged 41 and up

How we can help and support You

  • Practical and professional advice to support you throughout the redundancy process
  • Legally compliant documentation including all redundancy letters and suggested selection criteria
  • Client representation to conduct fair redundancy consultations