Employment (Business)

Redundancy

Dealing with a redundancy situation can be as daunting for employers as it is for employees. Employers need to ensure that they follow the correct procedures and apply them fairly whilst respecting the fact that employees have a number of rights in a redundancy situation.

Some of the situations where an employer may have to make redundancies include the closure of an entire business, the closure of a workplace or a reduction in the number of employees required to carry out a particular type of work.

When a redundancy situation arises, there are things to consider before any redundancies can be made. As an employer, you need to take advice to ensure you stay on the right side of the law and as far as possible, out of the Employment Tribunal:

1. You have an obligation to inform and consult employees about redundancy.

2. You must follow a fair procedure before an employee is selected for redundancy.

3. You should consider alternatives to redundancy.

4. Your employee may have an entitlement to a statutory or contractual redundancy payment.