Good and Legal Practice for Redundancy

Learn about the employment law challenges organizations face and understand the legal aspects of restructuring As an employer, you have a lot of discretion in choosing your pool. You must prove that you have sufficiently taken into account the formation of the pelvis. It must fall within the realm of adequate responses. When selecting individual employees to be included in the pool, it is recommended that consideration be given to both the formal job description and day-to-day activities. Determine if there are other employees within the company who are doing similar work and if the roles are interchangeable. Employers must always consult with employees before firing them for termination. Despite government intervention to avoid layoffs due to the COVID-19 pandemic, jobs continue to be lost in some organizations. The future economic situation remains uncertain, especially now that the “leave plan” has expired. Employers who decide that there is no alternative to dismissal should nevertheless follow the normal fair dismissal procedures, using the organisation`s own procedure (if applicable) and all the steps mentioned in this factsheet.

Acting without considering alternatives can encourage workers with more than two years` seniority to bring unfair dismissal actions. Check previously agreed procedures and policies. Are there relevant dismissal policies or union agreements? They may specify the formal procedure, including the selection criteria to be taken into account. Failure to follow a pre-agreed procedure could lead a labour court to conclude that the dismissals were unjustified. The employer should invite all employees to a group meeting to inform them that a possible termination situation has arisen, the reasons for it, and that individual counselling will begin shortly. The employer can also indicate which sectors will be affected and how many redundancies will be proposed. This is a good time for employers to confirm that they are accepting volunteers for dismissal. It`s hard to avoid the hype that followed last week`s events at P&O Ferries, where some 800 employees were reportedly dismissed for dismissal without notice and prior consultation before being replaced by cheaper staff.

In addition to the specificities and merits of P&O`s actions (which are complicated by international and maritime considerations), the wider circumstances have led to discussions about workers` rights in a situation of dismissal and the legal behaviour of employers. This blog provides an overview of the right to dismiss in England and Wales and provides advice on best practice: the employer must inform those selected for dismissal in writing that they are at risk of dismissal and invite them to individual interviews. There should be at least one other consultation, with the actual number of meetings depending on what the employee has to say. The employer must take into account all the points raised by the employee. The purpose of the consultation process is to discuss with employees the reasons for the dismissal, selection pools, criteria or assessment, and to reduce the number of employees to be terminated. Fair and meaningful consultation is a two-way process. It`s really important to listen. The Court clarified that consultation should take place at an educational stage in which the workers concerned can actively contribute to the proposal and the process. The later the consultation takes place in the discharge process, the more likely it is that it will come back to follow you.

It is preferable to allow employees to bring a companion to the consultations if they wish. It is important that consultations take place, even if you imagine that only one employee in a selection pool will be fired by only one. If the employee is part of an employee`s selection pool, they should be clearly informed during the consultation that this is the case to ensure that they have all the information they need to properly assess and respond to the situation. We have already discussed alternatives to compulsory redundancies, but what if redundancies cannot be avoided? In this blog, we`ll cover the most important things to keep in mind when starting the selection process for layoffs. The most important thing to remember is that the entire selection process is carried out in the fairest and most transparent manner possible. The more reasonable and open you are with your employees about the reasons for termination – how you define the parameters of selection pools and what selection criteria are used – the more likely the process is to go smoothly. Fair and consistent action is also less likely to lead to an unfair dismissal lawsuit. Being selected for discharge can have significant adverse effects on a person`s mental health, regardless of their medical history and personal resilience. People should receive immediate and ongoing support to protect their health and well-being.

This should include access to occupational health assessments, upon request or required, as well as counselling and other services through an Employee Assistance Program (EAP), where appropriate. Some EAPs offer ongoing support to employees who have been laid off for up to three months after leaving their job, so try to provide it and make sure people know how to access it. When the consultation is complete, the employer may have to select individuals from the selection pool if there are not enough volunteers for the dismissal. These decisions should be based on objective criteria such as: The potential indirect costs of dismissal include management time, increased turnover, and production losses due to lower morale and commitment of “surviving” employees.