Redundancy

2. The Redundancy Process

In redundancy situations, it is essential to stick strictly to the correct process and timing.

2.1 Plan well in advance and put everything you do in writing.

• It may be useful to have a written procedure for redundancies, though this might also limit your freedom of action.
• Log every stage. If there are problems, tribunals like to see a clear paper trail.

2.2 Consult and notify in time.

• If there are 20 or more people involved, you must begin consultations with employees or their representatives (see 3.2) and send form HR1 to notify the Department for Business, Enterprise and Regulatory Reform at least 30 days before the dismissals are due to take effect (90 days if 100 or more). Failure to do this is potentially costly, as any individual can then ask a tribunal for a 'protective award', giving up to 90 days' full pay to every employee involved.
• You must also be able to show that you have consulted each employee individually. The first meeting is usually to describe the process and timescales, discuss possible alternative work and explain redundancy pay calculations. Further meetings may be needed to give feedback and ultimately to give notice and explain the appeals procedure.

2.3 Define the pool from which employees will be chosen for redundancy, decide what criteria you want to use and select fairly from the pool (see 4).

• Selection criteria, but not individual scorings, should be disclosed to employees as part of the consultation.

2.4 Give redundant employees notice, in line with the terms of their contracts (and at least the statutory minimum notice period).

2.5 Implement the dismissals.