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Making staff redundant is one of the hardest things an employer will ever have to do. The last thing you want is to make matters worse by being accused of discrimination or unfair dismissal, and ending up at an employment tribunal. Your legal obligation as an employer is to be as fair as possible, which is enforced by the following process:
Making lawful redundancy selections is important, as whatever reason you give must be backed up by evidence. Keeping records of disciplinary matters and monitoring attendance – such as with Peninsula's holiday and absence management software – can be invaluable in this situation. Remember, making redundancy selections based on personal preferences or protected characteristics – age, sex, race etc – could land you in hot water.
Employees have a right to be consulted by you individually about why they have been chosen, and to inform them of any alternatives. If you are making 20 or more employees redundant, you will need to hold redundancy consultations with the relevant trade unions or employee representatives too, and you will need to inform the Redundancy Payments Office.
Statutory redundancy pay
You are legally obliged to give employees statutory redundancy pay; this is calculated depending on their age, length of service and original weekly pay. As a result, some employers choose to dismiss the youngest and least experienced staff, but this could be classed as age-related discrimination. On the other hand, a large number of employers offer generous redundancy packages, the terms of which are discussed in their contracts of employment.
Redundancy advice from Peninsula
Peninsula clients have access to on-demand employment law advice. This is particularly valuable if you find that making redundancies is unavoidable; what's more, you can speak to one of our employment law consultants for bespoke advice on the redundancy selection and consultation process.
Our redundancy advice for employers is intended to help you avoid ending up in an employment tribunal. However, if this should happen, we provide employment tribunal services backed up by insurance against most costs and compensation awards.
We can also advise on employment tribunal representation to ensure your case is managed and represented in the best possible way. Peace of mind is so important for an employer or business owner – perhaps most of all in times of need.
Let Peninsula help with the redundancy process
From redundancy selection to the redundancy consultation process, Peninsula can help to ensure the process of redundancy is as painless as possible. While in an ideal world no employees would have to be made redundant, it is unfortunately an unavoidable part of business. Nobody wants to lose staff, but with the support of Peninsula employers can at least be sure they are handling the issue in the most professional and sensitive way possible.
Being made redundant is one of the most traumatic things that can happen to an employee, so your company owes it to them that it is dealt with as smoothly as possible. Whether you are facing the prospect of having to make redundancies or the process is already underway, Peninsula can assist with any problems or queries that may arise. Similarly, we can also offer advice to ensure that any redundancy packages offered are correct.
If you require assistance with any area of redundancy, there are a variety of ways you can get in touch with the professional and experienced advisors at Peninsula. You can email us on firstname.lastname@example.org, call on 0800 328 9348 or arrange a call-back through the website at a time which is more convenient for you.
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