Getting redundancies right

In a tough economic environment employers may conclude they need to reduce headcount and make some redundancies.

If that’s the case, there’s a statutory process to follow before making people redundant. It’s important to get the process right to avoid unnecessary disputes or Employment Tribunal claims for unfair dismissal.

Here are some key points to remember if you think you need to make redundancies.

Make sure it’s a genuine redundancy

Redundancy is about the role, not the person. The redundancy process should never be used to dismiss a specific employee in place of performance management and a disciplinary process. A redundancy is only genuine if it fits within one of the following descriptions:

    • the employer ceases to carry on the business in which the employee was employed,
    • the employer ceases to carry on that business in the place where the employee was employed,
    • the needs of the business for employees to carry out work of a particular kind cease or diminish, or
    • the needs of the business for employees to carry out work of a particular kind in the place where the employee was employed cease or diminish.
Preparation is key

Once you have established the reason for the redundancy of a role, prepare some notes for the consultation process. These notes should include key information you need to communicate:

    • why you need to make redundancies,
    • which jobs are at risk,
    • how employees will be selected for redundancy,
    • the number of people who could be involved,
    • how you plan to carry out redundancies,
    • how redundancy pay will be calculated and
    • details of any agency workers at the company
Fulfil your obligations

Establish the timeframes within which you need to consult and whether you need to consult a trade union, or elected representatives. If you plan to make more than 20 people redundant within 90 days you will need to do collective consultation, so it’s important to know your obligations.

Plan for the process

Prepare your notes and make sure you know the timeframes and consultation requirements. It can then be helpful to create a communication plan for the consultation process. The plan should include details of the consultation with potentially redundant employees as well as other team members who may be affected by the changes.

Make proposals

When the consultation is complete, a redundancy can be confirmed. True consultation involves listening to alternative ideas to avoid redundancies, considering any contractor or agency worker roles instead and redeployment opportunities within the company. It’s also important to ensure the affected employees fully understand the reasons for the consultation and what it means for them specifically. Prior to consultation being completed any redundancy plans should be presented as proposals, subject to consultation.

 

If you’re making large-scale redundancies, it can result in a long and complex process, but whether it affects one employee or 50, it’s still important to get it right and consider their rights and how the news will affect them. Good planning and communication is key.

We work with businesses during difficult times and help to take away the worries about getting it wrong, so if you’re business needs to make these difficult decisions, get in touch with Helpful HR.

Leadership tips

Congratulations! You have achieved that long yearned for appointment or promotion in to a leadership role. The joy of your success may be palpable, and rightly so. However, an element of apprehension may make an appearance at some point.

Here are some top tips for any newly appointed leaders out there, to make sure you’re set for success.

Identify some quick wins

The first 100 days is a typical gauge of success, so speak to key people to identify some quick wins and find the right people to deliver them. Motivate, monitor and measure their progress, provide support and celebrate the successes. Make sure that the delivery of the quick wins sets the tone of your leadership style and be consistent.

Meet people and listen

Your success is dependent on other people, both in and outside of the business.  Make a commitment to meet:

  • your direct reports and key people in their teams
  • other leaders in the business (if you’re part of a senior leadership team)
  • key partners in other business areas, with whom you can share knowledge
  • key customers and suppliers

When you meet with them, ask questions about how things are going and what could be better. Listen to their thoughts and opinions and make notes.

Create a long-term plan

Whilst the quick wins serve a purpose, you also need to think long-term. Use the information from your initial meetings to identify the long-term priorities. Ensure you communicate to your team about these priorities and your reasoning. Ask for feedback, listen, then make a final decisive plan, identifying the ‘what’, ‘why’, ‘who’ and ‘when’ for each of your priorities.

Overcommunicate

Be visible and accessible. Arrange and stick to regular meetings with peers and direct reports, as well as key project leaders. Share information with them and ensure they share their progress with you.  Involve your direct reports in defining the ‘how’ in your plan. Your success is dependent on how it is delivered, as well as the ‘what’, ‘why’, ‘who’ and ‘when’.

There are many other things you could do, and there are many articles about successful leadership if you look for them. But these tips should help to send you off in the right direction. If you need support in a new leadership role, get in touch with Helpful HR.