A day does not now go by without redundancies being announced in the media. This will go on for many months. It is a difficult time for SMEs and their staffs. Sensitive handling and good consultation may minimise the redundancies and, at least, lessen the pain to some degree.
Although the need for redundancies may be forced on Employers at short notice they do need to take time and careful consideration before taking the first steps. A well thought out and planned programme is likely to reduce the risk of claims of unfair dismissal whilst also making it a little easier for employees.
There are a number of steps that need to be taken and in the right order; recent cases have made it more difficult to give notice of provisional termination followed by a period of consultation; formal consultation and notice to BERR is necessary where more than 20 redundancies are likely to arise.
From the outset consideration needs to be given to whether an enhanced packages will be paid, whether compromise agreements should be signed, what notice period staff should receive or whether they should be paid in lieu (some tax advantages for staff may be available). Decisions on these points may mean the process can be accelerated.
No two businesses are the same and so the process will differ for each firm. There are nonetheless some guiding principles which apply universally: don’t rush, consult early and, so far as is possible in the circumstances, err on the generous side in the size of the redundancy package.
I can help you if you are an employee who is under threat of redundancy or have been made redundant. Equally, I can help employers to advise on and plan a redundancy programme of one or many staff.
