A redundancy situation might arise when a business or a workplace closes or when there’s a reduction in the number of employees required to carry out a particular role.
In our experience, redundancies in small businesses usually happen for two reasons:
Cost saving Fluctuations in the market and financial and cash flow problems can drive employers to look at ways to reduce their overheads, and employees are normally one of the biggest costs to a business.
Restructure
You might find that you have the wrong skill sets in important positions and that you could make more efficient use of roles and duties. This might give rise to a restructure where employees are moved around but there is no reduction in the workforce (redeployment rather than redundancy) or you might need to change the roles substantially - usually a redundancy situation.
Redundancy should be a last resort. It can be one of the most distressing events an employee and often an employer can experience. It requires sensitive handling by the employer to ensure fair treatment of redundant employees as well as the productivity and morale of the remaining workforce. Redundancy legislation and case law is complex, and employers must understand their obligations, including employees' rights and the correct procedures to follow, as failure to do so could leave to expensive penalties.
Working with Jennetts HR Solutions, we can suggest alternative approaches for you to consider and provide guidance on managing redundancy when it's unavoidable. We will also work with you through every step of the redundancy process, including identifying the pool for selection, seeking volunteers, selection for redundancy, consulting employees, appeals and dismissals, offering suitable alternative employment and redundancy payments. We can also provide guidance on supporting employees experiencing redundancy as well as the ‘survivors’.
Whether you require advice, documentation, draft letters or chair of a meeting, we are able to assist you in whichever capacity you would prefer.
If you would like to find out more about our services call us on 07498 367408 or complete the enquiry form below.