How to ensure your business handles the redundancy process correctly.
In the current economic climate, many businesses are having to make tough decisions including downsizing their workforce to ensure they are able to continue to operate effectively.
Where a decision is made to make employees redundant, it is important to ensure the process is handled correctly to minimise future claims for unfair dismissal.
Valid reasons for making an employee redundant include:
- New technology or a new system which has made a role unnecessary
- The job an individual was hired for no longer exists
- The need to cut costs means staff numbers must be reduced
- The business is closing down or relocating
There are rules and procedures that employers need to follow, including consultation with employees and a proper selection process.
Care needs to be taken as an employer cannot necessarily avoid a claim for unfair dismissal just because an employee was dismissed due to redundancy.
In some situations, selecting an employee for genuine redundancy will be automatically unfair’ for example, choosing an employee for a reason connected to pregnancy, or because the employee has refused to sign a working time opt-out agreement.
If you are considering restructuring or making redundancies, Palmers’ expert employment law team can guide you through the process and ensure you adopt the correct procedures.
To find out more about the redundancy process or to discuss your requirements informally and in confidence, please get in touch with us today.