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Do employer's need a formal redundancy procedure?
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HR management outsourcing is when a team of experts manage your HR by looking after your contracts, policies, and procedures.
These are the HR essentials every business needs. Without them, your staff could bring successful claims against you, you could lose thousands in legal fines, and even face prosecution. Never underestimate the benefits of HR support for a small business.
We have years of experience in providing HR for SMEs and HR management outsourcing. Contact us to see how we can support you, including HR advice for small businesses - as well as medium and large companies.
Good human resource management is having round the clock support when you need it the most.
Whenever there’s a staff challenge or an important legal update, you just pick up the phone and get the help you need – no matter the time or place.
The main benefits of HR outsourcing are:
- Cost saving: Reduces the expenses for such things are hiring, training and employing an in-house HR team.
- Time saving: Saves time for staff members away from HR tasks.
- Improves expertise and compliance: Provides ongoing advice and support to ensure complete and total compliance.
- Reduces risk: Reduces the risk of any payroll and compliance failures.
Outsourcing HR is cheaper than hiring internal staff and saves you money overall when it comes to your HR service. Plus, you avoid making mistakes that could cost you heavily in claims and legal fines down the line. Every business should consider HR support as a way to avoid claims.
Peninsula is one of the leading HR outsourcing services in the UK, and by working with us you get access to our HR advisory service. Contact us for your outsourced SME HR today.
The key functions of HR outsourcing services are:
- Payroll and benefits: Helps a business to manage employee wages, tax processing, and employee enrolment.
- Recruitment and onboarding: Helps with job descriptions, sourcing new candidates, interviewing, and ensuring a smooth onboarding process.
- Compliance with employment law: Helps to ensure compliance with ever-changing employment legislation.
- Employee relations: Helps to manage grievance and disciplinary procedures, and any ongoing support that's required.
- HR admin: Helps to handle and manage daily tasks, such as employee records, sorting employment contracts, and processing any leave requests.
- Training and development: Helps to create and deliver staff training programs to improve employees' skills.
Our HR expert explains the implications of the extended ‘protected period’ for pregnant employees and returnees from family-related leave when considering redundancy:
Poundland owner Pepco has agreed to take on up to 71 Wilko stores, with staff working at the sites given priority for jobs once the sale has been completed.
Peninsula Team
Redundancy
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Where one is implemented, it should be highlighted to all employees, included in the employee handbook and all subsequent redundancies must comply with it.
The employer should seek evidence that all employees have the policy.
The policy should refer to the creation of a business case to show why redundancies are being considered.
Remember, redundancies do not always come about because of a lack of work; a restructure within a thriving business where job roles are consolidated can still result in a fair redundancy situation and this would be the focus of the business case.
It is important that measures alternative to redundancy are sought so this should also be pointed out in the policy. Consultation with employees is an extremely important element of a redundancy procedure so your policy should set out how this consultation will take place, and who with.
Bear in mind that trade unions may need to be involved in the consultation, or workforce representatives.
If there are no appropriate workforce representatives, you should include in your policy the requirement to hold elections to choose who will represent the workforce and take part in the consultation on their behalf.
Timescales should be included, and this should factor in any variances in the legislation which require minimum consultation periods.
You may also want to consider including in the policy examples of the criteria that employees will be scored against if the redundancy situation requires only some employees within a group to be selected for redundancy.
Be careful which criteria you use – reliability and attitude could be too subjective to use as the only criteria. Instead, use something which is measurable such as sales figures, or performance against monthly targets.
The policy should also set out how selection pools will be defined. Identifying those who will be responsible for undertaking the scoring and selection would also add to the policy, which may be different for different parts of the business.
The policy should refer to a search for alternative work within the business for those who have been selected for redundancy, together with an explanation of the right to a trial period in a new suitable alternative role.
The right to statutory redundancy pay should also be set out, including the impact that refusal of suitable alternative work will have on it.
Showing how redundancy pay is calculated would assist employees in understanding that they could expect if made redundant.
For further clarification on this issue, please call our Advice Service on 0800 028 2420.
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