What does a fair redundancy look like?

When you need to make a change to your business and this change may effect an employee, you have obligations towards those employees.  There is a lot of employment case law on how to run and conduct a fair and reasonable redundancy process.  Here is a summary of the points you need to consider:

1. As an employer, you primary obligation is to try and preserve the employment relationship – in other words, every effort should be made to keep effected employees employed.
2. You must consult with employees in a way that allows they to respond to your proposed changes – this means that you need to provide them with all the information available that you are using to reach your conclusion that a change is needed.
3. You must allow the employee to respond with alternative suggestions and you must genuinely consider their feedback.
4. Your proposal needs to be made for genuine business reasons – for example, a change in the market, a technology change in the company, a reduction or increase in business, to create efficiencies in the business.
5. You must consider whether or not the employee effected will be suitable for any other roles created as part of the change – if so, you have an obligation to offer them these roles. Even if the role is a less senior role.

 
Making people redundant is certainly one of the most difficult parts of being a manager but making sure that you have a plan and speak openly and honestly with employees can make it easier. See our Redundancy Checklist for more information or call if you need some help!

Download the Redundancy Checklist

---