A client in the printing industry, in the face of diminishing margins and intense competition, recently made the difficult but necessary decision to reduce the head count by at least 15 people across a workforce of 50. Rationalisation had already taken place in terms of location and automation of procedures but the tough ‘people issue’ had been put off and put off.
Initially quite relaxed the client said, “It doesn’t really matter what we do, does it? I read somewhere that as there will be under 20 redundancies, there is no legal obligation to consult.”
Whilst it is true that the law only requires that employers must consult union or elected representatives for 30 days where 20 or more employees are involved, or 90 days for 100 or more, its silence on timescales for redundancies of fewer than 20 does not mean that consultation is not required.
To ensure a fair redundancy process, employers must in all cases:
From initially advising the staff that the business could no longer support current staffing levels to setting out the proposals and making redundancy decisions took 20 days, giving those affected time to voice their views to management and to decide whether they wished to be considered for positions in the new structure or for voluntary redundancy.
Alarm bells rang when the client went on to say, “I have brought with me a list of all our staff and highlighted the ones we want to get rid of. Joe is a bit of a trouble-maker and as for Jill she is being well overpaid for what she does”.
It is critical that the redundancy procedure is fair and transparent. And so, having firstly established reasons for making certain roles redundant, all those potentially affected should be placed into a pool. For example if you have eight plate makers but only need four, you must draw up selection criteria in order to choose those who will remain and those who will be made redundant.
All eight must be considered against these criteria, which can be ‘last in, first out’ but more often will be ‘skills to do the job’ (as measured by appraisals), ‘absence record’ (based on timekeeping and sickness records) or ‘disciplinary record’. Without such a process, individuals can potentially claim for unfair dismissal.
Consultation and a fair procedure are just two important considerations for redundancy. There are many more. Always seek professional advice if you are unsure!