Making an employee redundant
Did you know that, even if you have just one role that you are considering removing from your organisational structure, you need to consult with the affected employee?
Some of our clients approach us for advice about making an employee redundant, thinking that it should be an emotionally charged but straightforward process of just telling the person that their job is going on a specific date and letting them know what, if any, redundancy pay they will receive.
However, if you are making an employee redundant, there is an obligation to hold consultations for redundancy in the form of individual consultation meetings with that individual to discuss the proposal and have a meaningful discussion about ways to potentially avoid the need for redundancy. If you do not have a consultation period, the risk is that you could face a claim of unfair dismissal at an employment tribunal – a costly, time-consuming process that could also affect your brand reputation given that outcomes are within the public domain.
Employers also need to ensure that the pool of people at risk of redundancy is genuine. Should other members of staff be part of the discussion, or is this genuinely about one specific role with a clearcut post holder to place at risk? This needs to be considered before making an employee redundant, otherwise this could also trigger a claim through the courts. And of course, if you do have a bigger pool of people at risk, you need to hold consultations for redundancy with all those within that pool.
What should an individual consultation cover?
Prepare and share a written consultation document explaining:
- ✓ the business rationale;
- ✓ proposed changes;
- ✓ affected roles;
- ✓ any selection pool and criteria;
- ✓ alternatives considered;
- ✓ proposed timetable; and
- ✓ how employees can respond.
In most cases, we recommend at least two consultation meetings.
Use the first to explain and confirm the details of the proposal and answer initial questions.
Allow time for the employee to reflect, then use the second to hear their feedback and explore alternatives or measures that could avoid or reduce redundancy.
Discuss vacancies and personal circumstances, consider suggestions properly and explain your response. Further meetings may be needed; do not treat two meetings as a limit. Keep notes and consider allowing a companion.
There is no fixed statutory duration or number of individual consultation meetings, but consultation must be meaningful and take place while the proposal can still change.
Explore the full employer redundancy process
If you propose 20 or more redundancies at one establishment within 90 days, read our guide to collective consultation for redundancy.
Thinking of making redundancies within your business?
If you need to hold individual consultations for redundancy or need support with any part of the redundancy process, get in touch with Pure Human Resources to discuss your plans and ensure that you follow the correct process. We know it’s never an easy situation but can help you make it work as smoothly as possible.
