COMPLIANCE
Redundancy processes and procedures
GemmaMullis ACIPP, CIPP policy and research officer, provides a timely reminder
A t the outset of the outbreak of the coronavirus epidemic, the chancellor of the exchequer, Rishi Sunak, announced to the nation and employers that “We will stand by you, and we hope you will stand by your employees”. And with that, the coronavirus job retention scheme (CJRS) was launched to help support employment during this difficult period. The success of the CJRS scheme has been remarkable and, as at 29 June 2020, it was reported that over nine million employees had been furloughed using the scheme, with £25.5 billion in wage subsidies paid out to employers. Although this has successfully helped to keep employees in employment, the UK is experiencing an increase in unemployment. Considering this, it would be a judicious decision to familiarise yourself with key elements and processes associated with making employees redundant. Process and selection Carrying out employee selection for redundancy should be done in a fair and objective way. Methods commonly used include: ● asking employees to volunteer ● reviewing disciplinary records ● reviewing staff appraisals, their skills, qualifications, and experience. When an employer is closing a whole operation, and making all employees who work within that department redundant, or only one person is being made redundant, a selection process will not have to be
carried out, although it is good practice to do so. If different roles are available, these should be offered to those at risk of redundancy in the first instance. Regardless of the selection method used, you should ensure that the process is in no way discriminative. Forms of discrimination can include, and are not limited to: ● age ● disability ● gender reassignment ● marriage or civil partnership status ● pregnancy or maternity leave ● race ● religion or belief ● sex ● sexual orientation ● family related leave (for example, parental, paternity or adoption leave) ● role as an employee or trade union representative ● membership of a trade union ● part-time or fixed-term employee status ● pay and working hours (for example, because the person has refused to give up rest breaks or asked for national minimum wage or holiday entitlements). An employee who feels that they have been discriminated in any way by their employer whilst being selected for redundancy, could claim that they have been treated unfairly. Employees do have the right to appeal any decision and this should be put forward in written format with details as to why they believe the decision to be unfair. In some cases, employees may be asked to reapply for their same role as
a method for the employer to make selections; however, it is good to note that if employees are unsuccessful in this process, or they do not wish to apply for the role, they will still be eligible for redundancy. Collective consultation If there are twenty or more employees being placed at risk of redundancy, an employer must carry out a collective consultation, as detailed in section 188 of the Trade Union and Labour Relations (Consolidation) Act 1992. To action this, the employer must: ● notify the Redundancy Payments Service (RPS) before a consultation starts, with the deadline depending on the number of proposed redundancies ● consult with trade union or elected employee representatives or, if there are none, with staff directly ● provide information to representatives or staff about the planned redundancies, giving them enough time to consider the details ● respond to any requests for further information ● give any affected staff termination notices showing the agreed leaving date ● issue redundancy notices once the consultation is complete. The RPS is notified by filling out a document which can be found at: https:// bit.ly/38sTQ4f When making 20–99 employees redundant, the RPS must be given 30 days’ notice prior to the first redundancy. Above 100, the notice period increases to 45 days. Although consultations have no time limit on them, there is a minimum period that must lapse before the employer can dismiss any employee. For 20–99
...familiarise yourself with key elements and processes associated with making employees redundant.
| Professional in Payroll, Pensions and Reward | September 2020 | Issue 63 24
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