A Manager's Guide to Managing Redundancy

Many British businesses have been slow to appreciateIn a redundancy situation companies are able to act
the full extent of changes that have occurred overwith complete autonomy, there is no legislative body
the years to Employment Law and continue to adoptlooking over their shoulders, monitoring the methods
out of date disciplinary and redundancy procedures.used and in the absence of a trade union, employees
Lucky for them then that the only people who seemare unlikely to be au fait with details of employment
less aware of the changes are the employeeslaw. However, if claims of unfair dismissal are
themselves; few employees would believe thesubsequently received the procedures and methods a
extent that they are now protected, but that is notcompany adopted will be laid bare and heavily
likely to last.scrutinized and the consequences of inadequate
With the maximum compensatory award in unfairprocedures penalised.
dismissal cases now over £50,000 and withA tribunal is not a pleasant place for any company
tribunals willing to make awards without any regardofficial, with the benefit of hindsight a tribunal will
to a company's financial position, small to mediumasks difficult questions; what was a real crisis six
sized businesses are most at risk.months earlier may be difficult to convey to people
Part-time and agency workers now have comparablewho have no knowledge of the business or in some
rights as those enjoyed by full time employees andcases the industry.
discrimination now carries a much wider definition,Being seen to be fair
with even more to come.Being a good employer who operates in good faith
With the introduction of "no win, no fee" legaland with genuine intentions is not enough, such
representation an employee now has little to looseemployers are more and more finding themselves
and much to gain by bringing a claim against a formerhaving to pay substantial compensation to former
employer. Tribunals do not operate in the same wayemployees, some of whom may be undeserving but
as a court of law, the company is not 'not guilty' untilnevertheless know how to play the system.
proven 'guilty' but rather considered guilty until theyUK companies are no longer seen as merely providing
can prove otherwise. In the absence of real evidenceemployment but as being socially responsible and
a tribunal will take anecdotal evidence and decidewhen a company takes on new employees they are
subjectively for themselves as to who, on balance,assuming more responsibility for that person than
they believe.many realise.
Redundancy guidelinesToday companies have to be very aware of what
The redundancy guidelines published by governingtheir responsibilities are and how they must act. For
bodies and often the advice that is received fromsmall companies where the owners may be more
employment law specialists is not always as helpful asentrepreneurial, the business more hand to mouth,
some businesses might like. Take for example wherethere is no provision to allow them to operate in any
redundancy guidelines talk of a 'consultation' process,other way than that expected of larger and more
what constitutes consultation is often open toestablished organisations.
interpretation and what an organisation might itselfSome managers can often make the mistake of
regard as 'consultation' a tribunal might take as 'athinking that redundancy procedures do not apply to
premeditated foregone conclusion'.junior staff and will still issue redundancies on the fly,
This article views the redundancy process from ansuch action will only expose them to a possible claim
organisations point of view where senior managersfor unfair dismissal that they will have every chance
are likely to be under considerable pressure,of loosing.
frustrated and keen to act.A step-by-step guide
Where fools rush inTo support senior managers a questionnaire has been
Few people, if any, relish the need for redundanciesdevised that will guide senior management through
but often there is a desire from management to getthe steps required when making redundancies.
a difficult task over with as quickly as possible soBy completing the questionnaire a manager will obtain
that the organisation can move on. Managers need toa redundancy procedure checklist and if each step is
be educated in the fact that although following thecompleted a company can be confident that they will
proper guidelines will take longer than just handing outbe able to vigorously defend any future unfair
redundancy notices letters the process can bringredundancy claims they receive.
benefits to the employer if done properly.