As a business, redundancies will obviously want to be avoided where possible due to the massive impact that they have on the business and, most importantly, employees and their livelihoods.
In this article, Employment Solicitor Chris Dobbs outlines how redundancies can be avoided and the alternatives to redundancy.
The importance of getting redundancies right
Stories about company bosses pitching redundancies wrong crop up quite regularly – from P&O’s PR nightmare to the recent viral post of HyperSocial CEO Branden Wallake in a tear-streamed selfie at having had to make lay-offs.
However they are framed and delivered, redundancies are never easy, least of all for the affected employees.
How a business frames the decision, the information it gives to staff about its reasons, and the time it takes to support those going through selection are all vital to ensuring that an unpleasant process goes as smoothly as possible.
However, there is a big step before the actual selection which can be easy to overlook and often leads to a significant amount of dispute. The first thing most employees will ask about a redundancy is simply: why?
How to avoid making redundancies
Making employees redundant, even when it seems the most obvious and necessary way to cut costs during a difficult time, should always be a last resort action.
Employers should act in good faith when using redundancy as a reason for dismissal and it is important to remember that staff are the future of any business so make sure to protect the talent pool and relations with employees.
There is a general expectation that businesses will avoid making compulsory redundancies (those where the business decides rather than staff voluntarily leaving) where possible.
What are the alternatives to redundancy?
In establishing the business case for compulsory redundancies, many businesses will consider a series of alternatives to help minimise the need to lose staff. Some alternatives to explore could include:
- Seeking applications for voluntary redundancies instead
- Considering applicants for early retirement
- Offering more flexible working arrangements
- Reducing hours or days to compensate reduced demand for work
- A temporary ban on overtime
- Reducing reliance on agency and casual staff
- Making use of sabbaticals
- Retraining and redeployment opportunities
What do you say to someone at risk of redundancy?
Consultation with potentially affected staff is one of the most important aspects of a redundancy procedure.
Staff should be kept aware of the risks and understand the reasons, process and decision-making criteria which may go into any final selection.
The other benefit of effective consultation is the possibility of discovering that staff may be more open to the alternatives set out above than an employer first considered. This can mean a solution which is preferable to all involved other than compulsory redundancies.
An employment solicitor on mitigating the risk of redundancy
Chris Dobbs, Employment Solicitor, said: “Redundancies are an occasional and unfortunate necessity in the lifecycle of many businesses.
Good and effective planning can help limit their impact on both the business generally but also on the staff members affected.
It is always important to consider the feasibility of alternative arrangements because if there is a potential and viable option which is not properly regarded, the redundancy itself may be unfair.”
Related: How to make redundancies, a guide for employers
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Employment & HR Solicitors
For more detailed and tailored advice on redundancy and procedure, please don’t hesitate to get in touch with our bright Employment Team.
Call us on 01202 499255, or fill out the form at the top of this page, for a free initial chat.
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