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Tag Archive

7 pitfalls to avoid when making redundancies

As the Chancellor’s coronavirus job retention scheme enters its final phase and the prospect of a return to normal business seems distant for many companies, employers are having to contemplate redundancies if they are to keep their business afloat.

Getting the redundancy procedure right is crucial, as mistakes can open the door for an employee to bring a claim before an employment tribunal, There has already been an increase in claims, particularly in regard to unfair dismissal relating to redundancy.

Here are some common misunderstandings and mistakes for employers to avoid.

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Five Key Elements of a Fair Redundancy

An employee with two years’ service can bring a claim for unfair dismissal. Where an employee with a protected characteristic argues that their redundancy was discriminatory, they can bring a claim regardless of their length of employment.

Even if the need to make redundancies is obvious, employers still need to follow a fair procedure carefully.  This will nearly always involve the following 5 key elements:

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Settlement Agreements

In our series of articles following the collapse of Carillion we have looked at how to avoid making compulsory redundancies along with consultations and redundancies. We conclude the series taking a look at Settlement Agreements.

Settlement Agreements are normally used to bring an employment relationship to an end in a mutually agreed way. They are often used when an employer and employee agree that their employment relationship is no longer working, and can be used to conclude a workplace dispute.

If as an employer you have been unable to avoid staff losses then a settlement agreement can also be a sensible way to document agreements reached concerning the termination of employment.

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Consultations and Compulsory Redundancies

Following on from our article ‘How to avoid compulsory redundancies’ a few months ago, unfortunately there can be instances where a business simply has no alternative but to consider cutting staff to reduce costs.

If that is the case then there are important rules that you must follow and if you fail to do so then any redundancies you may make could be unfair and you could be taken to a tribunal. You must identify which people you will make redundant and ensure you select people fairly.

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Brexit and Redundancy; a guide for employers

As the Brexit negotiations start getting into full swing and the likes of JP Morgan start looking at moving their offices away from the UK this will mean redundancies are inevitable. While your business may not to the same scale of JP Morgan, if you lose contracts then it will mean, you will need fewer employees to deliver the service. Again, redundancies are inevitable, so here’s a quick guide to ensure that you remain within the right side of the law. 

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