Ten steps to consider prior to starting redundancy consultation
Posted on 29th December 2020
Redundancy is a process that businesses sometimes have to go through due to factors that may have occurred over time or a loss of a major customer.
10 Steps to Consider
Following are 10 steps to consider prior to starting redundancy consultation:-
This might sound strange, however, it is always worth writing down what steps you have already taken to avoid redundancies taking place. Keep a copy of this document as it may come in handy in the future – as many of my clients know, I am an advocate that keeping scrupulous notes is really important.
Review your overall business and consider where you believe you need to reduce costs. Evaluate whether you still need all the roles that you have in the business. Consider if the work can be completed differently. Look at financial data and whether the redundancies will help you to achieve where you are trying to get to. Do you have any vacancies, contractors or temps in the business. Write down roles that might be affected. Send the information to a colleague or HR to see if they agree with you.
The consultation process will depend on the number of redundancies the business is considering which is categorised as: less than 20, 20 to 99 employees and 100 or more within a 90 day period.
Length of consultation:
less than 20 employees – no set limit
20 to 99 employees in a 90 day period – begin consultation at least 30 days before the first redundancy notice
100 or more employees in a 90 day period – begin consultation at least 45 days before the first redundancy notice
Consider whether the business needs to consult with – trade unions, elected representatives.
Consider whether you need to complete a HR1 form.
If you are reducing the over numbers of a particular type of role then you will need to think of the selection criteria you are going to use along with how you will score each criteria.
When is the best time to start the redundancy process
Write down how you will announce the redundancy situation and what you will say
Finally, start preparing the initial documentation.
Contact daxa@hrresultsltd.co.uk, if you would like assistance in preparing for a redundancy situation, please do not hesitate to contact me.
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