HR | Employment Law | Health & Safety

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HR | Employment Law | Health & Safety

Should Companies Have a redundancy policy?

It is advised that all companies should have a redundancy policy in place.

Being able to refer to a policy on the redundancy procedure can be a useful tool to ensure that the process is fair and not discriminatory.

It is important that Employers are aware of the correct consultation periods that are applicable, depending upon the scale of the redundancy.

Employers must start consultations before giving employees notice of dismissal. They must be mindful of the fact that the consultation process must be meaningful; representatives must have enough time to consider the proposals being put to them.

What Is Included In A Redundancy Policy?

The policy itself should outline the key steps in the redundancy process that should be followed.

Within the redundancy policy, it may be useful to outline what information needs to be disclosed to the employees appointed representatives. The following information should be disclosed in writing to the employee’s appointed representatives:

Resources to help your business

Redundancy Policy Template

redundancy selection matrix

The policy should emphasise that the redundancy selection criteria must be applied fairly and consistently to all employees. The criteria itself must be objective. The policy may give examples of criteria that may be used, such as:

The same criteria may not be applicable for every redundancy. Therefore each situation must be individually assessed. Using the same matrix every time may directly or indirectly discriminate against certain employees.

Resources to help your business

Redundancy Checklist and Procedure Guide

Ensuring The Dismissal Is Fair

The policy should also stress the importance of ensuring that the Company should always act reasonably and fairly in redundancy to avoid an employee bringing a claim for unfair dismissal. The policy should explain that a dismissal will be automatically unfair if:

Employers should also give employees the right to appeal against a redundancy decision if they wish to, and the appeal process should be clearly explained to them.