Considering Redundancies? .... Cooper Parry Offers Advice 
Added : 18th July 2008
Adrian Rowley says “During difficult trading circumstances employers should look to improve business efficiency and make the best of all resources available to them."
Organisations cannot change the trading conditions in which they operate and they usually do not end up in redundancy situations out of choice. The effects of the credit crunch on the housing market are an example of where circumstances on the other side of the world have had a significant impact on UK organisations and employees. Housebuilders, and other firms linked with the housing industry, have been particularly affected and the recent announcements of redundancies at Persimmon, Taylor Wimpey, Crest Nicholson and Bellway illustrate the fact that organisations will be forced to make tough decisions to enable them to remain competitive.
Adrian Rowley, HR Consultant for Regional Business Advisers Cooper Parry, considers some of the implications for employers and employees if they find themselves in the difficult situation where their organisation is considering redundancies.
Organisations with over 50 employees have a duty to consult with their workforce and the best companies engage their employees at the earliest opportunity rather than wait until it is too late. Requirements for consultation were introduced to UK employment law through the Information and Consultation of Employees Regulations (ICE) and there are many examples within industry where management seek to gather the views of their employees through works councils and committees.
Adrian says “During difficult trading circumstances employers should look to improve business efficiency and make the best of all resources available to them. This includes effective management of their most important and usually most expensive asset, people. Alternatives to redundancy include short term lay offs, recruitment and pay freezes and ending fixed term contracts; most employees would prefer to see these implemented rather than go through a redundancy programme.”
He continues “If redundancies are inevitable, the way in which they are handled is crucial to ensure that employees who are leaving, and those staying, see that people have been treated fairly. Employers should not under-estimate the time it takes to consult with their workforce and carry out a fair redundancy procedure. This may include the election of employee representatives if the employer is considering making more than 20 employees redundant. Employers also need to consider how they propose to select employees for redundancy as they could be at risk of an unfair dismissal claim if the selection criteria are not objective, fair and non-discriminatory.”
In addition to the right to be consulted, employees are entitled to be considered for alternative employment within the business, with a trial period in some cases. Employees may also be entitled to a redundancy payment from their employer, and may well receive a payment in lieu of notice rather than be asked to work out their notice period.
Finally, Adrian comments “Employers may consider providing “outplacement consultancy” which helps employees on the receiving end of redundancy to identify their strengths and plan their next career move.”
Sign up to our RSS