Redundancy Procedure Checklist
Many businesses are facing a “new normal”. Whether you are planning to re-open your work premises soon, have just re-opened or have been working throughout the COVID19 lockdown, you are likely to have seen some significant changes in the way your business is operating short term and you may now be facing challenges as to what your business will look like in the future.
In addition, with furlough pay starting to be phased out over the next few months, an increasing number of businesses will need to start looking forensically at their business offerings and their workforce and make some difficult decisions.
Whether a business decides ultimately to pivot, restructure or re-organise its workforce, roles may be merged or lost altogether and the need for the number of individuals working in different areas of the business may change or decline resulting in a potential redundancy situation.
If your business is contemplating making any changes which may result in a loss of some of your workforce, it is key that you consider whether such changes would result in a genuine redundancy situation and consider the procedures you must follow to make employee’s redundant lawfully.
We have put together the following checklist to assist you in deciding whether a redundancy situation may exist and if so, what considerations you may need to take into account and the procedures you would need to follow.
Procedure to follow:
Considering making 20 or more redundancies within a 90 day period?
Notify the Secretary of State if you are making 20 or more redundancies within a 90 day period (thus triggering the collective redundancy process):
At least 30 days before the first dismissal if 20-99 redundancies contemplated; and
At least 45 days before the first dismissal if 100 + redundancies contemplated.
If you are contemplating making less than 90 redundancies within a 90 day period, there is no set process/timeline you must follow, but it is sensible to follow the general process below (without the need to elect staff representatives in most cases).
At risk meeting:
Hold a meeting with all employees who may be at risk of redundancy as a group (the “at risk” meeting).
Explain the reasons for the potential redundancies and explain how many jobs are at risk of redundancy – emphasising this is only a possibility at this stage.
Explain that ways of avoiding redundancies are being explored and that the business will consider any alternative suggestions for ways to avoid redundancies and invite such suggestions.
Set out the provisional Selection Pools and Objective Selection Criteria for selecting individuals for redundancy, but stress this is only a proposal and these will be fully consulted on.
Consider inviting volunteers for voluntary redundancy (usually in exchange for an enhanced redundancy payment).
Explain that all employees at risk of redundancy have the right to take paid time off to seek alternative employment.
Explain the next steps – for collective redundancy, that will mean either setting out which Trade Union/elected employee representatives you will be collectively consulting with regards to the process, or if none, set out how employee representatives will be elected.
Take notes of this meeting.
First Letter:
Follow the “at risk” meeting with a letter confirming everything that was discussed at the meeting and attach a copy of the Selection Pooling and Objective Selection Criteria and scoring guidelines (if applicable).
For collective consultation – set out how employee representatives will be elected (if applicable) and carry out the elections as soon as possible. Once elected, provide the employee reps with the notice to the Secretary of State and meaningfully consult with them on ways to avoid/reduce redundancies and consult with them regarding the proposed Selection Pools and Objective Selection Criteria (and try to reach agreement on both).
Selection and Scoring (where applicable):
Carry out initial selection pooling and scoring to select which employees should be selected for redundancy. Ensure at least 2 different managers undertake the scoring (separately) for each individual to ensure objectivity and fairness.
Second letter:
Write to those employees who have been provisionally selected for redundancy to invite them to a first individual meeting to discuss their provisional selection.
Set out the reasons for the redundancy situation, explain they have been provisionally selected for redundancy and summarise the consultation steps you have taken to date.
Attach a copy of the individual scoring for the employee to consider and explain that no final decisions have been made at this stage and that a further meeting will be held with them if their selection for redundancy is confirmed.
Explain the employee’s can be accompanied at the meeting by a TU Representative or a colleague.
First Individual Meeting:
Consult with each individual employee with regards to their selection scores (if applicable), the proposal to make them redundant and the terms of the redundancy.
Ask the employee to comment on any scoring and selection and be prepared to discuss the scoring in detail.
Also discuss whether the employee can see any ways to negate redundancies etc.
Discuss any alternative roles within the business (including any Group company if applicable).
Hand the employee a list of all available roles to take away with them and ask them to consider them.
Discuss how any redundancy payment and notice pay etc would be calculated if they were to be confirmed as redundant.
Inform the employee of the next steps – in that you will go away and consider anything they have put forward (and anything the employee representatives have put forward if applicable) and will make a final decision regarding their redundancy over the next few days. Ask them to come and speak to you if they wish to be considered for any alternative roles and/or have anything to add after the meeting which they wish you to consider. Explain that you will call them to a second meeting if it is decided that the individual will be made redundant.
Explain if the decision is made to confirm the redundancy, the next stage would be to serve them with notice of dismissal for reason of redundancy and explain that the employee would have the right to appeal against the decision to dismiss them.
Take notes of the meeting.
Follow up after the meeting:
Follow up with the employee with anything that was discussed or challenged at the meeting (including scoring etc).
If anyone in the Selection Pool has their scorings changed after challenging them, make sure the scores do not alter which employees have been provisionally selected for redundancy (and if they do, you will need to repeat the process above with the newly identified at risk employees).
Make your decision.
Write to the employees who are going to be made redundant inviting them to a second individual meeting and informing them they can be accompanied by a TU Representative or colleague.
Second Individual Meeting:
Allow the employee to be accompanied at the meeting.
If nothing has changed since the last meeting, discuss with the employee what you have considered since the last meeting and confirm that the employee has been selected for redundancy.
Check that there are no alterative roles which the employee wishes to be considered for as an alternative to redundancy.
If none, discuss the redundancy payment and notice monies etc due to the employee and confirm when the employee will be served with notice of dismissal by reason of redundancy (i.e their termination date which could be today’s date or they could be asked to work out their notice period) and what the arrangements will be regarding notice. If the employee is to work their notice period, remind the employee that they have the right to paid time off to seek alternative employment.
Confirm the employee will be able to appeal the decision to dismiss them by reason of redundancy.
Take notes of the meeting.
Dismissal letter:
This can be handed to the employee at the end of the second individual meeting.
The letter should confirm the decision to dismiss the employee by reason of redundancy and set out the reason for the redundancy.
The letter should state the employee’s termination date (i.e whether they are working out their notice, or specify “with immediate effect” if paying the employee in lieu of notice).
The letter should set out any redundancy payment and any other payments due to the employee.
The letter should also allow the employee to appeal the decision to dismiss them and explain how to appeal, who to and any relevant time limit for doing so.
Appeal:
If the employee appeals, invite them (in writing) to an appeals hearing to be held by someone senior to the person who held the previous meetings and took the original decision to dismiss the employee for redundancy (if possible).
The letter inviting the employee to an appeals hearing should also set out the employee’s right to be accompanied by either a TU Representative or a colleague of their choice at the appeals hearing.
Take notes of the meeting.
Following the appeals hearing, the person chairing should consider whether the decision to make the employee redundant was fair and whether a fair process was followed. They should confirm their final decision regarding the employee’s dismissal to the employee in writing.
Can we help?
If you need any help or assistance with any redundancy process, please do contact us.
If you would like to receive future factsheets and updates direct to your inbox, please drop us a line at janesmith@moore-law.co.uk and we would be happy to send these to you.
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**Please note that this redundancy procedure is a general overview and is intended for general guidance only. It does not consitute legal advice. There may be additional steps that you may need to take depending on circumstances. If you would like specific tailored advice, please do get in touch.
Moore Law Aug 2020.