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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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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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Redundancy selection: The Krypton factor

Selecting employees for redundancy is a difficult process, often an exercise in removing part of the workforce so that the whole may continue to work and hopefully grow once again. In seeking to make the unpleasant choices there should naturally be a degree of objectivity in the selection methods used. Often this is done via a matrix of key attributes (such as absences, sales records etc.) where candidates for redundancy are ‘scored’ against colleagues also up for selection.

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