Despite rising interest rates and an uncertain economy, the number of planned redundancies in the UK fell by 21% in the last quarter, according to research conducted by GQ Littler.
However, due to the war in Ukraine and the deteriorating wider economy, it may not be long before businesses must make difficult decisions around redundancy. Therefore, HR teams need to work out a clear process in anticipation for possible redundancies.
Our top tips for being prepared are: –
- Be up to date with current legislative compliance;
- Create a strategy and update any redundancy policies;
- Ensure there is good communication;
- Be honest and transparent; and
- Identify how support will be provided to staff if there are redundancies.
If HR teams do not stay on top of the process, businesses could face costly Employment Tribunal claims.
If it does come down to considering redundancies, there are steps that can be taken before making employees redundant. Businesses should only consider making redundancies if part or all the organisation is closing or has closed, where there is a reduced requirement for the number of roles or a change of the types of roles needed to do certain work or a change in location.
There are options to consider which could reduce or avoid redundancies such as: –
- Offer voluntary redundancy (however this should be offered fairly and consistently to avoid any allegations of discrimination);
- Offer flexible shifts or job shares with agreement from employees;
- Moving employees into other vacant roles or other parts of the organisation;
- Let go of temporary or contract workers;
- Limit or stop overtime; and
- Freeze recruitment.
Recently, Premier Inn outlined that they may need to axe up to 6,000 jobs due to a reduced demand since the pandemic. However, they have stated that it is hoped voluntary redundancy and lower contracted hours could make up a significant proportion of the cuts.
If redundancies are necessary in a business, it is essential to follow the correct process to avoid the potential risk of costly and time-consuming Tribunal proceedings. The redundancy process for an employer is something we can offer expert legal advice on at Consilia Legal. For further information regarding Redundancies from an Employer’s Point of View, please feel free to contact one of our experienced employment solicitors on 0113 322 9222 or email us on enquiries@consilialegal.co.uk.
Disclaimer
- Please note – this guidance is not intended to be taken as legal advice – for individual situations, you will need to take specific legal advice.
- The information in this guide is correct as of August 2022 and should be read alongside the government’s specific guidance.