Making Staff Redundant

June 2008

With recent economic developments placing added pressure on businesses ranging from the large to the small, it is an almost inescapable fact that more employers are going to have to consider reducing their workforce, usually through making surplus employees redundant.

Redundancy is a potentially difficult process, requiring the employer to take certain steps. Failure to properly follow a correct redundancy procedure can give rise to expensive claims for unfair dismissal.

Redundancy Documents

Simply-docs provides a range of documents that are designed to help employers successfully navigate through the redundancy process.

The Redundancy Policy serves two purposes. Firstly it provides a first port-of-call information source for managers and others involved in a potential redundancy. Secondly, it clearly sets out to employees what they can expect during such a process and reassures them that they will be treated fairly and will not be subject to any discriminatory treatment.

The Redundancy Procedure Checklist is designed for use by those who are managing the redundancy procedure. It sets out in a clear step-by-step format the stages of the redundancy process, providing prompts to the employer to ensure that the ask themselves the right questions and tick the right boxes, both procedurally and substantively.

The Redundancy document sub-folder also contains letters relating to the process, including appeal letters and alternative work offer letters, aimed at rendering the administrative side of the procedure quicker and simpler.

Compromise Agreements, which can be used to ward off a potential tribunal claim or to impose special conditions on redundant employees, are also available, and are to be found in the Compromise Agreements sub-folder.

Handling a redundancy procedure correctly will help to minimise hard-feelings from what is often a difficult situation for both employer and employee.

Alternatives to Redundancy

Employers should always consider alternatives to redundancy. One such alternative is to change working patterns and practices in the organisation. Whilst this must be done in agreement with the workforce, employees are often keener to reduce hours by changing their work pattern than they are to risk being made redundant, or risk seeing colleagues lose their jobs. Simply-docs has a number of employment contracts designed for flexible working arrangements.

The contents of this Newsletter are for reference purposes only and do not constitute legal advice. Independent legal advice should be sought in relation to any specific legal matter.

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