Geoffrey Caesar, Solicitor

Redundancy and restructuring are often challenging and stressful for employers and employees. However, there are some steps employers can take to ensure that they handle these processes fairly and lawfully, based on employment law and guidance from the Advisory, Conciliation and Arbitration Service (ACAS).

First, employers should check if redundancy is needed. Redundancy is usually a type of dismissal when a role is no longer required, for example, because of closure, relocation or changes in the work or roles needed. Employers should consider if there are any alternatives to redundancy, such as changing working hours, offering voluntary redundancy or moving employees into different roles.

Second, employers should follow the proper process for redundancy. This includes:

• Planning a framework for the redundancy process in advance, including the timescales, communication methods and support measures for employees.
• Informing employees about the situation and the reasons for the proposed redundancies as soon as possible.
• Holding individual or collective consultations with employees or their representatives, depending on the number of redundancies planned. Consultations should be meaningful and genuine and aim to explore ways to avoid or reduce redundancies or mitigate their impact.
• Selecting employees for redundancy using fair and objective criteria that can be applied consistently and transparently. Employers should avoid using discriminatory or subjective criteria like age, gender, disability or performance.
• Work out redundancy pay for each employee made redundant based on their age, length of service, and contractual terms. Employers should also pay other contractual entitlements, such as notice pay, holiday pay or bonuses.
• Giving notice to each employee made redundant in writing and with the correct notice period. Employers should also provide a written statement of the reasons for dismissal and the redundancy pay calculation.
• Offering an appeals process for employees who wish to challenge their redundancy decision or raise concerns. Employers should respond to appeals promptly and fairly and allow employees to accompany a colleague or a trade union representative at appeal meetings.
• Offering alternative employment within the organisation or group of companies if possible and suitable. Employers should give employees a trial period to assess the suitability of the new role.

By following these steps, employers can handle redundancy and restructuring processes fairly and lawfully and minimise the risk of legal claims or disputes. Employers can also maintain good relations with their remaining staff and support their wellbeing and morale.

Obtaining legal advice at the start of a redundancy process and involving an employment lawyer throughout can help avoid costly claims and reputational damage later on. Contact me for further information.