How An Employer Should Deal With Compulsory Redundancy

Having to make an employee redundant is never going to be an enjoyable thing for a business owner but unfortunately, with the economy the way it is, this problematic scenario is consistently becoming a reality for many businesses across the country. To make matters worse, the difficulty of such situations is exacerbated by complicated employment laws, which is exactly why you should consider contacting Monarch Solicitors for legal advice.
By offering expert advice, our team make sure that your business isn’t hindered by any confusing employment regulations, which will ultimately ensure that you are able to manage your staff in a more effective manner. We have a wealth of experience working for a range of commercial clients, and offering advice regarding compulsory redundancies certainly falls under our umbrella.
Redundancy is obviously when an employer dismisses a staff member because their job role has now become obsolete, but the complicated laws involved can make employers feel uncertain and vulnerable. We’ve put together a few tips on how an employer should handle redundancy:

1. Offering A Different Job Role

As an employer, you should try to prevent a compulsory redundancy if possible. This means that you’ll have to take steps towards avoiding such an eventuality, such as banning overtime or putting tighter restrictions on your recruitment process. If the job role cannot be saved, then you can still offer them a different role within your business. To do this, you must offer another role before their contract expires and put the offer in writing for them. It’s important to note that, to avoid a compulsory redundancy, the employee must actually be offered this alternative role, rather than being asked to apply.

2. Compulsory Redundancy

If you find yourself having to select people for compulsory redundancy, then you have to make absolutely sure that these people are chosen fairly. By choosing someone due to upcoming maternity leave, their age or any disabilities they may have, then you are certainly in breach of indirect discrimination. Employees chosen for redundancy must be done so through their aptitude and suitability for their role, as well as their attendance and disciplinary record. Put in the most basic of terms, you should seek to keep the people best suited for the job.

3. Redundancy Pay

When making an employee redundant, one of the biggest issues is going to be sorting out the redundancy pay. First of all, you’re going to need to find out which of your employees qualify- this would be any staff members that have worked for you for at least 2 years and have been dismissed due to redundancy. An employee’s statutory redundancy pay is dependent on their age and length of service (which is limited to 20 years), and you can also offer extra redundancy pay if you want to. For those being made redundant with under 2 years’ service, you can choose whether or not you’d like to offer any redundancy pay.
Making a staff member, or multiple members, redundant is a complicated process that requires a thorough knowledge of UK employment law. Fortunately, Monarch are the best solicitors Manchester has to offer, and we’d be happy to offer you a free 30 minute consultation for any redundancy concerns.

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