Redundancy and Restructuring
Redundancy is always a thorny issue but it can be a necessary aspect of running a business. If you’re looking to restructure or make your business more efficient, closing down an office and changing location, or if you need to make cutbacks to an overstaffed workforce it is important to carry out a fair and reasonable redundancy process.
There are a lot of considerations for employers to address, such as the need to consult with affected staff, the use of fair and consistent selection criteria, whether or not to invite voluntary redundancies, whether there are any alternative options to redundancy and identifying any other suitable roles within the company for the affected staff.
Redundancies must be handled carefully and sensitively. Some employers fall into a trap of using redundancy as an ‘amicable way’ to terminate an employee’s employment. This is a common mistake. There has to be a genuine reason for making an individual redundant and an objective and uniform selection criteria. Selection should not be personal. This is where particular care needs to be taken if you want to avoid an unfair dismissal claim from a disgruntled employee. Redundancy is not a way of dealing with an imbalance of part-time staff, or an employee who is ‘too expensive’ to keep or to force an employee into early retirement. You must also take care not to discriminate against employees on the grounds of a ‘protected characteristic’ (see our section on Discrimination).
Talk to Tollers
We can show you how to carry out a fair and legal process that will ultimately help you to achieve the outcome that you want for your business. Our advice will not only be straightforward and easy to follow, but will also be practical and unique to your circumstances, keeping in mind the commercial considerations facing your business at all times.