When business takes a downturn, it can be difficult to make the decision to make your employees redundant. However, redundancies are an incredibly common part of any business function and we are here to help you to manage any redundancy or restructuring process fairly.
Many employers believe that employees themselves are made redundant, however in any redundancy process it’s important to remember that it is the role, not the person, that is affected. Therefore, it’s crucial to ensure that appropriate roles are targeted and that you give proper consideration to how many employees should be placed at risk of redundancy. In addition, whilst many employers believe that a restructure is possible by changing employees’ job roles, this could land you in hot water, as changing employees’ roles in this way could still meet the definition of a redundancy situation, or your employees could have the right to resign and claim constructive dismissal if their contracts are fundamentally varied.
If you’re making over 20 employees redundant in a time period of 90 days or less, there are additional obligations which arise relating to collective consultation and notifying the Secretary of State of your intentions. Failing to do so can be costly, as employees may be able to bring a claim against your business for 90 days’ pay for failing to collectively consult. With any redundancy situation, you’re also legally obliged to consult individually with affected employees, and a failure to conduct a reasonable consultation process can result in a claim being brought against you for unfair dismissal.
Employees with over 2 years’ service will also have the right to a statutory redundancy payment, which we can help you to calculate. They also have the right to a breakdown of their redundancy pay and many employers don’t realise that it’s a criminal offence to fail to provide this document.
If you need help with managing a redundancy process or restructure, please contact one of our experts on 0114 303 2300 for a no obligation quote. We offer a professional and personalised service on a fixed fee basis with competitive pricing, so you can be sure you are getting great value for money.