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If your business finds itself in the unfortunate situation of having to make staff redundant, it is essential that you are aware of the procedures that need to be followed. Otherwise, the savings made by the redundancies may simply be frittered way in defending employment tribunal claims! What follows next is an overview of the main stages of the process that employers must follow in order to make people redundant fairly.

1. CONSIDER WHETHER THERE IS A GENUINE REDUNDANCY SITUATION
The legal definition of ‘redundancy’ may be different to your own  understanding of the term. A genuine redundancy situation arises where a business no longer requires the employee’s role to be carried out or requires less people to carry out the employee’s role. Alternatively, the business itself may be ceasing to operate.

DO: Inform the workforce of a potential risk of redundancy in good time before any decisions are made.
DO: Consider alternatives to redundancy, such as asking employees whether they would be willing to accept a pay cut or take a sabbatical.

2. FAIR SELECTION
Employers should identify a group of employees from whom those to be made redundant will be drawn. This ‘pool of selection’ would normally be a grouping of employees who are all doing similar work or are based in the same location

DO: Select from the pool using fair criteria which are objective, capable of measurement and non-discriminatory. Avoid using criteria such as ‘LIFO’ or ‘attendance’, they could be seen as discriminatory.
DO: Apply the criteria consistently and objectively.

3. CONSULTATION
Employers must consult each employee at risk of redundancy on an individual basis. Also remember that special rules apply where an employer is proposing a collective redundancy (20 or more employees at one establishment with a period of 90 days).

DO: Explain to the employee why their job may be under threat. Refer to the selection criteria and allow the employee to make comments.
DO: Use terminology such as ‘proposed’ or ‘may be’ at this stage, to demonstrate that no decisions have been made.

4. CONSIDER SUITABLE ALTERNATIVE EMPLOYMENT
Where an employee is at risk of redundancy, it is necessary to consider whether there is suitable alternative employment for them elsewhere within the company.

DO: Make an offer of suitable alternative employment in writing, before the employee’s current role comes to an end. When considering candidates for a role, you are allowed to discriminate in favour of employees who are at risk of redundancy first.
DO: Bear in mind employees on maternity leave. They should be offered alternative employment in priority to all others.

5. THE DISMISSAL
Individuals who are made redundant should be invited to a further meeting, at which they are given a written notice of dismissal;
they must be given a right of appeal. They may also be entitled to a statutory redundancy payment.

In summary, conducting a fair redundancy process can be complex and time consuming.

If you are considering making redundancies and would like to be guided throughthe process, please do not hesitate to contact Nick Hobden or Sarah Robbins at regional law firm Thomson Snell & Passmore Solicitors. on 01892 510000 or 01322 623700.
Alternatively e-mail nick.hobden@ts-p.co.uk or sarah.robbins@ts-p.co.uk