Do you have a redundancy situation?

Have you ceased or do you intend to cease trading?
Have the requirements of the business for employees to carry out work of a particular kind ceased or diminished or are they expected to cease or diminish?

If you answer ‘yes’ to any of the above questions and have a strong business rationale for change, you have a potential redundancy situation.

Minimise or avoid redundancies?

Long-term options include:

• Review staffing levels to meet changes in the market.
• Withdrawing contracted-out work.
• Considering suitable alternative work.
• Considering relocation or transferring production.

Short-term options include:

• Reduce overtime, introduce short-time working or laying off staff if the contract of employment allows.
• Stop recruitment (particularly of temporary staff).

What is the difference between lay off and redundancy?

Lay Off and Short Time Working occurs when there is a ‘temporary reduction in work’, however this option must be written into the contract of employment. Redundancy occurs when there is a ‘cessation of work’.

What are the most common criteria when selecting for redundancy?

Objective: non-discriminatory, measurable criteria should be used when deciding who is to be made redundant. Objective criteria could include length of service, attendance, disciplinary records, skills and qualifications. All these must be supported by documentation e.g. certification and company training records. However, existing criteria may already exist in the company Redundancy Policy. Criteria should be agreed by employees during the consultation period.

Meaningful consultation?

The consultation period of at least two weeks should cover relevant steps as listed below:

• Informing the individual or group that their roles are potentially ‘At Risk’ of redundancy.
• Discussion of suggestions / ideas to avoid redundancy. These may include job share, voluntary redundancy etc.
• Agreeing selection criteria.
• Disclosure of scores from selection process.
• Invite and hold Dismissal meeting.
• Confirm decision in writing giving reason for dismissal and the employees’ right to appeal.

NB: It is important to note that advice should be taken throughout the whole redundancy process, including the consultation period.

How do I help my employees find other work?

Once Redundancy Notice has been issued, in addition to allowing paid time off to look for new work or for training, it is good practice to give redundant employees as much information as possible to help them at this difficult period of their working lives. Such information may include:

• How to complete application forms and present themselves at job interviews.
• How to search for appropriate vacancies in the press and follow up opportunities.
• The importance of being prepared to consider a wide range of alternative jobs.

How do I help my employees find other work?

Employers looking to make a collective redundancy of 20+ employees must disclose the required relevant information to the Trade Union or elected employee representatives throughout the process. There is also a requirement to inform the Department of Trade and Industry, the advice line can assist you in obtaining the relevant HR1 form.

NB: Please contact the Advice Line as soon as you aware of a potential redundancy situation and before taking any action as the consequences of getting it wrong can be costly to you and your business.